Key Takeaways:
UBS cut its price target on CanSino Biologics Inc. (6185.HK) to HKD52.4 from HKD59.8, citing the company's first-quarter financial results which showed a wider net loss.
In a research report issued Wednesday, the investment bank maintained its "Buy" rating on the stock, indicating continued long-term confidence despite the near-term forecast adjustments.
For the first quarter of 2026, CanSino reported a 38.7% year-over-year increase in revenue to RMB190 million. However, the company recorded a net loss of RMB40 million for the period, which prompted UBS to revise its earnings per share forecasts for 2026, 2027, and 2028 downward.
Despite the target price reduction and lowered earnings estimates, the bank's decision to reiterate its 'Buy' rating suggests it sees underlying value. The conflicting signals may increase investor uncertainty and short-term volatility for the Hong Kong-listed shares.
According to the report, UBS now forecasts CanSino's earnings per share for 2026 at RMB0.77, a significant reduction from the previous estimate of RMB1.36. The bank's forecasts for 2027 and 2028 were also lowered to RMB2.15 and RMB3.58, respectively. The report noted that the first-quarter revenue growth was slightly ahead of its own full-year forecast of 34 percent.
The lowered price target reflects a more cautious near-term earnings outlook for CanSino Biologics. Investors will be watching the company's progress toward profitability and any updates on its product pipeline in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
