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On Friday, JPMorgan analyst Yang Huang upgraded the stock rating of Shanghai Junshi Biosciences Co Ltd (1877:HK) to Neutral from Underweight, while also increasing the price target to HK$12.00 from the previous HK$11.00. This adjustment comes in the wake of the company’s first-quarter results for 2025 and subsequent discussions with Junshi’s management.
The analyst highlighted the strong performance of Junshi’s product toripalimab, a PD-1 inhibitor, in the Chinese market, noting that its sales have surpassed expectations in recent quarters. Despite this positive sales momentum, Huang expressed a cautious outlook due to the uncertainty surrounding the timing of key data readouts, which could serve as significant drivers for the stock’s performance.
The upgrade to a Neutral rating reflects a change in stance towards the company’s Hong Kong-listed stock, known as Junshi-H. However, JPMorgan maintains an Underweight rating on the A-shares of the company, referred to as Junshi-A, citing valuation concerns.
The new price target set by JPMorgan suggests a modest increase in the valuation of Junshi Biosciences’ shares. The firm’s decision to upgrade the stock rating is based on recent financial results and the company’s current market position, as well as the potential for future growth as indicated by the company’s management.
Investors and market watchers will likely monitor Junshi Biosciences closely to see if the company can continue its sales momentum and provide clarity on the anticipated data that could influence its stock value in the near term.
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