UBS: Lowers HUTCHMED (00013) target price to HKD 29.5, maintains "Buy" rating.
The bank has pushed back AstraZeneca's milestone to 2027 and revised its spending forecasts, resulting in a downward adjustment of the earnings per share estimate for 2026, while the forecast for 2027 has been raised from 6 cents to 8 cents.
UBS released a research report stating that HUTCHMED (00013) experienced a year-on-year revenue increase of 0.2% in the first half, roughly in line with the bank's expectations. Revenue from oncology or immunology business grew 13% year-on-year, exceeding the banks forecast; net profit was $15.9 million, down from $455 million in the same period last year, primarily due to a one-off gain recognized last year from the sale of a stake in Shanghai Pharmaceuticals Holding. The bank has postponed the milestone for AstraZeneca to 2027 and revised its expenditure forecast, leading to a downgrade of the earnings per share estimate for 2026, while the forecast for 2027 was revised up from 6 cents to 8 cents. The bank lowered its target price for the company from HKD 29.7 to HKD 29.5 and maintained a "Buy" rating.
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