Piper: Solid Near-Term Support For WX Share Price

Analysts at Piper Jaffray reinstate coverage of WuXi AppTec Inc WX with a "neutral" rating, while raising their estimates for the company. The target price for WX is set to $16. Piper Jaffray says, “We believe WX fundamentals remain largely unchanged following the termination of merger talks with CRL. We expect solid near-term support on WX share price, given management's visibility and ability to deliver robust growth in 2010 far exceeding its US peers.” “Going into 2011, we believe Street expectations on small molecule mfg (Telaprevir) and tox ramp up need to be carefully managed (PJC $378m vs. Street $387m), because we believe (1) the sluggish tox market in the US is not entirely about price but rather a reflection of supply/demand, and (2) revenue from commercial Telaprevir mfg may not hit the peak right off the bat,” the analysts add. Piper Jaffray has raised its EPS estimates for FY10 and FY11 from $0.73 to $1.13 and from $0.79 to $0.94, respectively. More Analyst Ratings here