Goldman Sachs has issued a research report maintaining a "Buy" rating on WuXi XDC (02268) with a target price of HK$97.9, corresponding to a forward 12-month price-to-earnings ratio of approximately 35 times.

The investment bank noted that WuXi XDC has strong backlog momentum and improving commercialization visibility, and it remains bullish on the company's multi-year growth outlook. Commercialization catalysts are also becoming increasingly clear, with process performance qualification (PPQ) projects having reached 21, and the number of Biologics License Application (BLA) submissions is expected to rise.

Goldman Sachs pointed out that WuXi XDC's Wuxi manufacturing facility may undergo its first FDA inspection in the first quarter of next year, while BLAs from some clients are expected to be submitted before the end of 2026, which would serve as an important validation milestone for its global commercial manufacturing capabilities.

The investment bank cited company management as saying that AI-driven drug discovery (AIDD) can provide significant support for upstream target identification and molecule generation, but at this stage, AI's direct impact on CDMO order conversion remains limited, with the key bottleneck still being wet lab execution. Management expects that the ability to integrate CDO/CDMO capabilities will be crucial for translating innovation into commercial opportunities.