02359 Should I Buy

The analyst rating for WUXI APPTEC was raised to Overweight by Morgan Stanley due to several key factors: 1. Increased Earnings Forecast: Morgan Stanley raised its earnings forecast for 2026-30 by 0-3% based on improved gross margins. 2. Target Price Increase: The target price was increased from HKD143 to HKD143.5. 3. Strong Earnings Growth Prediction: The broker predicts a compound annual growth rate (CAGR) of 24% for WUXI APPTEC's earnings from 2024 to 2027. 4. Competitive Advantages: The firm is optimistic about WUXI APPTEC's unique CRDMO/CTDMO model and platform advantages, which position it favorably compared to domestic competitors. 5. Project Visibility: WUXI APPTEC has the largest number of early-stage projects among Chinese competitors, providing stronger visibility for medium- to long-term growth. These factors collectively contributed to the positive outlook and the Overweight rating assigned to the company.