UPDATE: Credit Suisse Raises PT on WuXi PharmaTech on Good 2012 Results

In a report published Monday, Credit Suisse reiterated its Outperform rating on WuXi PharmaTech

, and raised its price target from $18.00 to $21.60. Credit Suisse noted, “WuXi PharmaTech announced its 2012 results. Revenue grew 22.8% YoY; non-GAAP EPS increased by 12.9% YoY and beat consensus by 5.7%. We view it as positive. Gross margin of laboratory services continues to erode (40.7% in 2011 versus 38.0% in 2012) due to labour cost inflation, RMB appreciation and lower pricing in chemistry services despite improved productivity. Operating margin increased mainly on new staff hiring and increased R&D expenses. Biologics will probably turn profitable in 2015; its loss reduced the 2012 net profit margin by around 2%, according to the management.” WuXi PharmaTech closed on Friday at $17.75.