Jefferies Recommends WuXi PharmaTech

Jefferies & Co. is out with a research report on pharmaceutical services and is recommending WuXi PharmaTech Inc. WX. It has a Buy rating and a $22 price target on shares. In a note to clients, Jefferies & Co. writes, "Pharmaceutical outsourcing stock valuations have held up surprisingly well, despite a lack of catalysts and a likely repeat of sluggish revenue. We expect strong bookings again in 2Q and more confident commentary of revenue improvement in 2H11, but do not expect the revenue improvement in 2Q but for a little help from currencies. In light of that backdrop, we recommend favoring cheaper stocks - WX and PPDI." Shares of WX gained 16 cents on Friday to close at $16.70.