In "The Big Banks," Citigroup raises Beigene's target price to 288 yuan, upgrading earnings forecasts after quarterly results beat expectations

AASTOCKS
2025.11.07 02:32

Citi published a report stating that Beigene (06160.HK)(ONC.US)(688235.SH) performed better than expected in the third quarter, with quarterly revenue increasing by 41% year-on-year and net profit rising by 32.4% quarter-on-quarter, both exceeding market expectations. The company has raised its earnings guidance for 2025 for the second time. The R&D pipeline is progressing smoothly, with BCL-2 and BTK drugs set to submit global market applications soon, while CDK4 is expected to enter Phase III clinical trials in the first half of 2026.

Considering the performance, the firm has raised its revenue forecasts for 2025 to 2027 by 2.6%, 2.1%, and 2.4%, respectively, and net profit forecasts by 58.2%, 15.9%, and 13.7%. Based on this, the firm adjusted its valuation, raising the target prices for Beigene's US stock, H shares, and A shares from $448, HKD 264.4, and RMB 353.6 to $491.2, HKD 288, and RMB 423.4, maintaining an "Outperform" rating.

The stock is currently trading at a projected price-to-sales ratio of 5.4 times for the next year, below the three-year average of 6.4 times

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