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Investing.com - Morgan Stanley (NYSE:MS) has initiated coverage on Medtide Inc (HK:3880) with an Equalweight rating and a price target of HK$38.00, representing a potential 13% upside from current levels.
The investment bank’s analysis is based on a discounted cash flow methodology using an 11.5% discount rate, which is relatively high within its healthcare coverage to account for Medtide’s early stage in its company life cycle and potential revenue volatility.
Morgan Stanley projects that Medtide will achieve compound annual growth rates exceeding 30% from 2024 to 2027, but notes that longer-term sustainability depends on the approval and commercial success of several key contracts.
The price target corresponds to a price-to-earnings ratio of 16x based on Morgan Stanley’s 2026 earnings per share estimate, which represents a discount to peers like WuXi AppTec, which trades at 19x 2026 estimated earnings.
Morgan Stanley indicates that Medtide, as a peptides-focused contract development and manufacturing organization (CDMO), should trade at a discount to peers until there is greater clarity on its molecular pipeline and outsourcing agreements, which typically become more defined as drug programs advance toward approval and commercialization.
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