Morgan Stanley: Upgrades Lvzhibo (09887) rating to "Overweight", raises target price to HK$93

Morgan Stanley released a research report stating that the six-month progression-free survival (PFS) rate for Lvzhibo's (09887) core asset LBL-024 (PD-L1/4-1BB) in first-line non-small cell lung cancer (NSCLC), as presented at WCLC, is positive, indicating that early objective response rate (ORR) can durability, marking an important clinical milestone for the company. The bank believes the risk-reward is now skewed to the upside, and has upgraded the rating from "Equal-weight" to "Overweight," raising the target price from HK$85 to HK$93. Next steps to watch include ESMO data in October on LBL-024 in EP-NEC, biliary tract cancer, small cell lung cancer, and LBL-034, as well as National Medical Products Administration approval for LBL-024 in first-line and beyond EP-NEC (expected in the first half of 2027), and potential business development progress.