UBS: WuXi AppTec (02359) remains stable against the market trend, reiterates "buy" rating.

UBS released a research report stating that WuXi AppTec (02359) is currently trading at 17 times the forecasted P/E ratio for 2026. The bank has set its H-share target price at 171.2 Hong Kong dollars based on the discounted cash flow (DCF) method and reiterated its "buy" rating. The US Department of Defense included WuXi AppTec in the updated H-list on June 8, 2026. UBS expects that because WuXi AppTec's business exposure to the US government is negligible, the direct impact on its fundamentals is limited, and the short-term operational impact can be ignored. The bank pointed out that with strong demand in the TIDES and small molecule business, WuXi AppTec's operational momentum remains very resilient. For the full year 2026, the company maintains its annual business revenue growth target of 18% to 22% and a total revenue target of 51.3 billion to 53 billion yuan (equivalent to a year-on-year growth of 12.9% to 16.6%). Management is confident in achieving these targets and is actively seeking opportunities to raise guidance.