Morgan Stanley: Expects WuXi AppTec (02359) stock price to rise in the next 30 days.

Morgan Stanley releases research report stating that the stock price of WuXi AppTec (02359) will rise in the next 30 days, as the company has raised its performance guidance and first-quarter performance exceeded expectations. The firm estimates that the probability of this scenario occurring is around 70% to 80% (or "very likely"). The firm has given WuXi AppTec an "overweight" rating with a target price of HK$155. The firm points out that WuXi AppTec's first-quarter revenue from continuing operations increased by 39% year-on-year, and profit increased by 27% year-on-year, exceeding the firm's expectations by 15% to 20%, mainly driven by an 80% year-on-year increase in small molecule D&M business revenue. In terms of leading indicators, the first quarter saw the addition of 6 long-term and high-value commercial contracts, a 24% year-on-year increase in order backlog to RMB 60 billion, and an upward revision of the full-year TIDES business revenue growth guidance to 40% (previously less than 30%). The firm believes that with the company's guidance for a continuous operating revenue growth of 18% to 22% by 2026, there is a possibility of performance exceeding this range.