0550 GMT - Wuxi Biologics' near-to-medium term growth trajectory looks stable, CGS International analyst Lily Wang says in a note. The company has a resilient order backlog, which showed growth in 2024, signaling minimal disruption from U.S. geopolitical concerns, Wang says. CGSI raises its revenue forecasts by 7.2% and 10.6% for 2025 and 2026, respectively. It also lifts the target price to HK$25.06 from HK$10.87, to reflect more optimism around manufacturing projects. However, CGSI keeps a hold rating due to tariff uncertainty, as potentially higher costs from overseas facilities could pressure its gross profit margin. Clients may shift to rival manufacturers who are expanding their U.S. production capacity, adding risks to Wuxi Biologics' market share, Wang adds. Shares are 1.1% higher at HK$22.95. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
April 24, 2025 01:50 ET (05:50 GMT)
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