Oppenheimer Reiterates Outperform Rating, $22 PT for WuXi PharmaTech
In a company update published earlier today, Oppenheimer Holdings reiterated its Outperform rating and $22.00 price target for WuXi PharmaTech Inc. (NYSE: WX).
Oppenheimer went on to say “Consistent with the bullish industry view we hold based on a recent survey (see our CRO industry note published on 5/10: Pharma/Biotech Companies Jumped on the Bandwagon to Asia), WX printed 1Q with impressive revenue growth of 26.2% to $118M, beating our Street-high estimate of $115.5M. Gross margin of 35.5% (-159 qoq/372bps yoy) was in line with our expectation. Operating income grew 4%, due to lower GM and higher SG&A expenses, as WX added senior staff members. GAAP EPS of $0.28 also beat our Street-high estimate of $0.27. WX's guidance of 2Q12 revenue of $124-129M (+23-28% yoy) is above consensus of $118M (+17%). Operating margin guidance suggests potential for better margin in 2H12. Management sees biologics as a growth driver for the next 2-3 years.”
WuXi PharmaTech Inc. closed yesterday at $13.41.
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