[ET Net News Agency, 15 July 2020] Morgan Stanley raised its target price for Shanghai
Fosun Pharmaceutical (02196) to HK$33.9 from HK$29.5 and maintained its "overweight"
rating.
The research house raised its earnings forecasts by 1%-7% in 2022-2024 to capture more
contribution from its recently approved Herceptin biosimilar and potential launch of a
Covid-19 vaccine.
Morgan also raised the terminal growth rate from 4% to 5% to capture better pipeline
prospects. As an integrated healthcare company, Fosun Pharma offers exposure to almost
all segments along the China healthcare value chain. It benefits from the rising demand
for private healthcare services. (KL)