WXXWY - WuXi Biologics: Staying On The Sidelines

2024-04-24 15:27:29 ET

Summary

• The market's opinion of WuXi Biologics' 2024 financial prospects is negative, taking into account elevated interest rates and geopolitical risk factors.
• Recent share repurchases support the view that WXXWY's current valuations have factored in the company's headwinds to a large degree.
• I award a Hold rating to WuXi Biologics; the stock has gotten cheaper but the company's near-term business outlook is unfavorable.

Elevator Pitch

WuXi Biologics (Cayman) Inc. ( WXXWY ) [2269:HK] stock is rated as a Hold.

With my prior article written on July 19, 2023, I drew attention to the company's spin-off of its subsidiary WuXi XDC Cayman [2268:HK] and its 1H 2023 key metrics. My latest update analyzes WXXWY's 2024 prospects and the stock's valuations. ...

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