Analyst Nico Chen of DBS maintained a Hold rating on Wuxi Biologics (Cayman) (WXIBF – Research Report), with a price target of HK$24.00.
Nico Chen’s rating is based on the potential impact of the Biosecure Act, which poses significant risks to WuXi Biologics’ business operations. If enacted, this legislation would prohibit US companies from engaging with WuXi Biologics by 2032, which could severely affect the company’s revenue streams, given that the US market accounts for a substantial portion of its business.
Despite the company’s strong performance in the antibody-drug conjugate segment and its expanding commercial projects, the looming threat of the Biosecure Act creates uncertainty. The company’s global market share and efforts to diversify its geographical presence are commendable, yet the potential legislative changes in the US present a major headwind. Therefore, Nico Chen has opted for a Hold rating, reflecting a cautious approach amid these regulatory challenges.
Chen covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Wuxi Biologics (Cayman), and AptarGroup. According to TipRanks, Chen has an average return of 3.6% and a 54.05% success rate on recommended stocks.