Jefferies Downgrades WuXi PharmaTech (WX) to Hold

Jefferies downgraded WuXi PharmaTech (NYSE: WX) from Buy to Hold with a price target of $38.00 (from $40.00).

Analyst David Windley comments, "WX performed at its best in 2013 when stable margins delivered revenue growth cleanly to the operating line, and below the line gains added (not negated) growth. 2014 has been sluggish with OM pressure returning and flat EPS, even with faster revenue growth YTD. We think those pressures continue in 2015. EPS expectations are too high, making 2015 guidance in March a risk. WX's slower EPS growth and declining margin structure likely cap valuation."

The firm bumped FY2014 EPS from $1.83 to $1.85 and cut FY2015 EPS from $2.14 to $2.10.

For an analyst ratings summary and ratings history on WuXi PharmaTech click here. For more ratings news on WuXi PharmaTech click here.

Shares of WuXi PharmaTech closed at $36.16 yesterday.

You May Also Be Interested In

• Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
• Beike (BEKE) PT Raised to $23 at Morgan Stanley
• Jefferies Downgrades Pop Mart International Group Ltd (9992:HK) to Hold