Gold prices steady amid Fed rate cut hopes; Trump-Putin talks awaited
On Wednesday, JPMorgan initiated coverage on Bora Pharmaceuticals, Taiwan’s leading Contract Development and Manufacturing Organization (CDMO), with an Overweight (OW) rating and a price target of NT$1,060. The firm’s analysts highlighted the company’s impressive net profit growth, which quadrupled from 2021 to 2024, attributing the success to strategic acquisitions and product optimization.
The financial institution forecasts a 30% Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) from 2025 to 2027. This optimistic projection is based on a robust CDMO pipeline fueled by new client acquisitions and increased capacity, as well as an optimized pharmaceutical sales product portfolio. Bora’s market share in Direct Liquid Solutions (DLS) is expected to remain resilient, with additional contributions from Vigafyde and the discontinuation of unprofitable product categories.
JPMorgan’s analysis suggests that Bora’s share price correlates closely with its gross profit, which is anticipated to rise from the second half of 2025 due to higher utilization and an improved product mix. The analysts recommend purchasing Bora’s shares on market dips, believing that the company is structurally positioned to capitalize on the increasing demand for onshore manufacturing in the United States.
However, JPMorgan also cautioned investors about potential risks, including the possibility of future fundraising for additional mergers and acquisitions, slower-than-expected capacity ramp-up at the Maple Grove facility, and earnings volatility that may arise from new acquisitions. Despite these risks, the firm’s stance remains bullish on Bora Pharmaceuticals’ future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.