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Investing.com - JPMorgan downgraded Shanghai Junshi Biosciences Co Ltd (HK:1877) from Neutral to Underweight while raising its price target to HK$18.00 from HK$12.00.
The downgrade comes despite the biotech company delivering largely in-line financial results, with higher-than-expected partnership income offsetting slight weakness in product sales.
JPMorgan noted that Junshi demonstrated strong cost control over sales, marketing, and administrative expenses, although research and development expenses increased due to the initiation of more clinical trials.
The investment bank lowered its sales forecasts for Junshi Biosciences for fiscal years 2025 and 2026 but raised projections for subsequent years to include sales contributions from assets approaching late-stage development.
While JPMorgan expressed encouragement about the company’s plans to advance additional assets into clinical development, it believes the current valuation already reflects significant optimism and requires more clinical data evidence to justify.
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