Citi Initiates 90-Day Positive Catalyst Watch on Pharmaron with "Buy" Rating

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Citi has issued a research report initiating a 90-day positive catalyst watch on Pharmaron (03759). The primary catalysts identified are the group's upcoming release of its full-year results and a more optimistic guidance for the current year, driven by accelerated order growth. Citi maintains a "Buy" rating on Pharmaron's H-shares with a target price of HK$45. The bank views the group as a global leader in drug research and development, capitalizing on the growth trend of China's CRO industry. While maintaining its leadership in drug R&D, the group is also expanding into downstream late-stage clinical development and commercial production, including ventures into the biologics sector. Citi stated that Pharmaron is poised to be a leading indicator of recovering client demand, offering clearer guidance for future revenue growth. This may lead to financial guidance for the current fiscal year exceeding market consensus, potentially driving a positive revaluation of the stock. Citi's earnings per share forecast for the group this year is 4% above the market consensus.

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