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Investing.com - Goldman Sachs has initiated coverage on Hangzhou Tigermed Consulting Co (HK:3347) with a Buy rating and a price target of HK$62.10.
The investment bank views Tigermed as well-positioned to benefit from a recovery in the clinical contract research organization (CRO) sector. Goldman Sachs also upgraded Tigermed’s A shares to Buy from Neutral.
The stock has pulled back 20% following soft second-quarter earnings and now trades flat year-to-date for A shares while H shares are up 42%, underperforming the broader Chinese healthcare sector which has gained 18% onshore and 91% offshore.
Goldman Sachs sees the current price as an attractive entry point, citing expectations for accelerating new order intake in the fourth quarter of 2025 and improving earnings visibility for 2026-2028.
The investment bank believes the CRO industry is approaching an inflection point with recovery expected from late 2025 into 2026, supported by a sharp rebound in funding via IPOs and follow-on offerings (up 517% year-over-year to $13.0 billion year-to-date) and increased upfront payments from licensing deals.
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