Shares of WuXi AppTec, a leading pharmaceutical services company in China, surged on Thursday, with the Hong Kong-listed stock climbing 6.51% and the Shanghai-traded shares rising 5.3%. The stock rallies came after Nomura, a prominent brokerage firm, raised its price targets for both listings and reaffirmed its "buy" rating on the company.

Nomura's bullish stance on WuXi AppTec was driven by improving sentiment and expectations of accelerating growth in the third quarter of 2024, particularly in the company's chemistry segment. The brokerage slightly lifted its revenue and earnings forecasts for fiscal years 2024 and 2025, anticipating that the robust growth in the chemistry business will offset potential softening in other segments.

The analyst report highlighted WuXi AppTec's strong position in the rapidly growing pharmaceutical outsourcing market in China, where the company provides a wide range of services, including drug discovery, development, and manufacturing. With its extensive expertise and state-of-the-art facilities, WuXi AppTec has become a trusted partner for both domestic and international pharmaceutical companies seeking to tap into the lucrative Chinese market.