Wells Fargo Starts WuXi PharmaTech (WX) at Outperform; Momentum In Commercial Manufacturing
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Price: $25.50 -0.27%
Rating Summary:
7 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on WuXi PharmaTech (NYSE: WX) with an Outperform. PT range $16-$17.
Wells analyst says, "We believe WX can maintain double-digit revenue growth beyond 2015, driven by increasing penetration of discovery services, growth from recent investments in downstream services, expansion into new markets such as clinical development, some additional market share capture, and strong growth in manufacturing propelled by the successful launch of the company's first commercial contract (Incivek). We believe margin headwinds from wage inflation, appreciation of the Renminbi, and tax rate increases will be offset after 2011 by growth in higher margin services such as biology, better utilization of new facilities (particularly the Suzhou toxicology facility), and the opening of a facility in Wuhan, a lowercost area of China."
For more ratings news on WuXi PharmaTech click here and for the rating history of WuXi PharmaTech click here.
Shares of WuXi PharmaTech closed at $12.77 yesterday.
Wells analyst says, "We believe WX can maintain double-digit revenue growth beyond 2015, driven by increasing penetration of discovery services, growth from recent investments in downstream services, expansion into new markets such as clinical development, some additional market share capture, and strong growth in manufacturing propelled by the successful launch of the company's first commercial contract (Incivek). We believe margin headwinds from wage inflation, appreciation of the Renminbi, and tax rate increases will be offset after 2011 by growth in higher margin services such as biology, better utilization of new facilities (particularly the Suzhou toxicology facility), and the opening of a facility in Wuhan, a lowercost area of China."
For more ratings news on WuXi PharmaTech click here and for the rating history of WuXi PharmaTech click here.
Shares of WuXi PharmaTech closed at $12.77 yesterday.
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