Global Markets Strategy 26 January 2026 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. China Equity Strategy Shenzhen Opportunity Forum takeaways On 20-21 January, the 2026 JPM China Opportunity Forum brought together 100+ companies and 210+ investors. We s ...

Core Viewpoint - Guardant Health Inc. (NASDAQ:GH) is recognized as a leading investment opportunity in the life sciences sector, with multiple firms raising their price targets and maintaining positive ratings on the stock, indicating strong growth potential and limited downside risk [1][2][3]. Group 1: Price Target Increases - Canaccord raised its price target on Guardant Health to $125 from $100, maintaining a Buy rating, and highlighted the stock's strong growth potential compared to peers [1]. - Mizuho increased its price target to $120 from $100 while keeping an Outperform rating, suggesting further room for multiple expansion in the medical devices and diagnostics sector [2]. - Bank of America also raised its price target to $120 from $100, maintaining a Buy rating, as it anticipates a resurgence in Biopharma spending will benefit companies like Guardant Health [3]. Group 2: Market Outlook - The life sciences sector is expected to maintain an upward trend into 2026, with firms optimistic about the normalization of market conditions as industry headwinds subside [1][3]. - Mizuho's outlook indicates that healthcare may emerge as a preferred defensive play amidst market volatility, particularly in AI and cryptocurrency sectors [2]. - Bank of America emphasizes the importance of R&D exposure for companies in the life sciences as a primary catalyst for growth moving forward [3]. Group 3: Company Overview - Guardant Health is a precision oncology company that specializes in blood and tissue tests, providing valuable data sets both in the US and internationally [4].

Core Insights - Abbott missed analysts' estimates for third-quarter revenue, reporting total revenue of $11.37 billion, slightly below the expected $11.40 billion, leading to a 3% drop in shares premarket [1][2]. Revenue Breakdown - Diagnostics segment sales fell 6.6% to $2.25 billion, missing the estimate of $2.29 billion, primarily due to a decline in COVID-19 testing demand [3]. - Medical devices segment sales increased 14.8% to $5.45 billion, driven by strong demand for continuous glucose monitors and heart devices [3]. External Factors - The halt of foreign aid has disrupted the supply chain for medical products and diagnostic tests in low-income countries, impacting Abbott's operations [2]. - Abbott is facing pricing pressure from China's procurement program, which purchases medical devices in bulk at significant discounts [2]. Profitability - On an adjusted basis, Abbott reported a third-quarter profit per share of $1.30, aligning with analysts' expectations [4]. - The company revised its annual adjusted profit forecast to a range of $5.12 to $5.18 per share, slightly down from the previous range of $5.10 to $5.20 [4].