Market Overview

Oppenheimer Reiterates Outperform Rating, $22 PT for WuXi PharmaTech

Related WX
The State Of Chinese Company Take-Private Offers: A Look At WuXi PharmaTech
Genomics England Contracts with WuXi NextCODE as Clinical Interpretation Partner for 100,000 Genomes Project
Premarket Biotech Digest: Clovis A Buy, Cellceutix Rallies, Pfizer's Avelumab Milestone (Seeking Alpha)

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.

Latest Ratings for WX

Oct 2015Morgan StanleyDowngradesOverweightEqual-weight
Mar 2015Goldman SachsDowngradesConviction BuyNeutral
Nov 2014JefferiesDowngradesBuyHold

View More Analyst Ratings for WX
View the Latest Analyst Ratings

Posted-In: Oppenheimer HoldingsAnalyst Color Reiteration Analyst Ratings


Related Articles (WX)

View Comments and Join the Discussion!

Get Benzinga's Newsletters