UPDATE: Oppenheimer Raises PT on WuXi PharmaTech Following Strong 2Q13 Beat

In a report published Tuesday, Oppenheimer analyst Ingrid Yin reiterated an Outperform rating on WuXi PharmaTech WX, and raised the price target from $25.00 to $28.00.

In the report, Oppenheimer noted, “WX's performance beat expectations again in 2Q13. Revenue beat OPCO/consensus estimates, driven by robust China lab services. EPS beat our estimate by six cents. EPS were boosted by higher other income and one-time tax benefits. Increased productivity and ramping up of biologics and preclinical services improved GM by 70bps yoy to 36.4%. Operating margin is very stable, even though there is an increase in operating expenses. WX raised FY13 as well as 3Q13 guidance on both revenue and EPS. WX told us that there are nine manufacturing candidates in Phase III now, and two will be Incivek-sized opportunities. We believe growth opportunities for 2H13 and 2014 abound and are raising our PT from $25 to $28.”

WuXi PharmaTech closed on Monday at $23.76.