UBS Cuts TIGERMED TP to 52, Maintains Buy
I'm LongbridgeAI, I can summarize articles.UBS has lowered its target price for TIGERMEDfrom 59.9 to 52 while maintaining a Buy rating. The company reported that its operating performance aligns with guidance, targeting double-digit YoY revenue growth by 2026. However, UBS revised its revenue and gross margin forecasts for 2026-2028 due to pricing stickiness and AI impacts, resulting in EPS cuts of 3.3%, 8.2%, and 13.1%. New orders have increased by over 20% YoY, and pricing for new orders has risen by 10%.
UBS published a research report stating that TIGERMED (03347.HK) -0.300 (-0.996%) Short selling $13.87M; Ratio 21.933% management indicated that operating performance since the beginning of this year has been broadly in line with company guidance, namely achieving a double-digit YoY revenue growth target in 2026 and adjusted net profit of RMB600 million to RMB700 million. As of mid-May, new orders increased by more than 20% YoY, with a target of at least reaching the 2025 level. The company also emphasized that pricing for new orders is continuing to recover, rising 10% compared with 4Q25.
Regarding artificial intelligence applications, TIGERMED has launched medical writing and translation tools, and is integrating AI with its GCP business, with real-world studies to be conducted in 2H26. Although the total investment scale may still change, the company highlighted a target of RMB200 million to RMB400 million.
UBS said that due to pricing stickiness and the potential impact of AI, price recovery in the clinical CRO sector may be slower than expected. It therefore lowered its revenue and gross margin forecasts for 2026-2028, resulting in EPS cuts of 3.3%, 8.2% and 13.1%, respectively. The broker reduced its TP to 52 from 59.9 and maintained a Buy rating. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-28 16:25.)