Sun Pharma and Lupin are on the radar of investors on Thursday.
Brokerage: ICICI Sec | Rating: Add | Target: Rs 585
The brokerage house said that the US FDA’s establishment inspection report for Dadra unit is the largest plant for the company in India. In fact, the EIR indicates the company’s focus on bringing all facilities under regulatory compliance. It does not expect the firm to impact financials, but will help valuation metrics improve. Going forward, the focus will now be on resolution of Halol facility and expects FY18 performance to remain muted for the firm.
Brokerage: B&K | Rating: Buy
The broking firm said that receipt of EIR for Dadra unit is quite positive for the firm and removes overhang on the stock with regards to FDA resolution. The next trigger for the stock will be resolution of Halol and added that R&D investment benefits are likely to show up FY19 onwards. Having said that, it expects FY18 earnings for the company to remain weak.
Brokerage: Citi | Rating: Neutral
The global financial services firm said that the EIR at Dadra on expected lines and all eyes are on Halol now. It believes that the company’s base revenue is most exposed among peers. A lifting of the warning letter at Halol could be a key catalyst for the stock.
Brokerage: UBS | Rating: Buy | Target: Rs 1,135
The global research firm said that it sees limited triggers in near-term as key generic launches pushed to FY19. Additionally, there could be near term pricing pressure on US business, which could remain high.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 1,224
The global research firm said that the Symbiomix acquisition will enrich specialty pipeline. In fact, the company could add new indications and expand the market non-US and EU geographies. It expects the company to reach peak sales in about three years.
Brokerage: ICICI Securities | Rating: Buy | Target: Rs 1,280
The brokerage house expects the base business growth and margin to pick up FY19 onwards. It also expects 11.3 percent revenue & 19.7% PAT CAGR over FY18-20. Regulatory hurdles, higher than expected competition in the US are downside risks for the stock.
Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 1,215
Motilal Oswal expects recovery in the second half and the stock is factoring in most concerns. Having said that pricing pressure and new competition in Metformin could keep the US business in check. It also believes that the sales could bottom in the second quarter of this fiscal. Motilal Oswal also expects key launches & ramp-up in specialty business portfolio to drive earnings.
Brokerage: CLSA | Rating: Outperform | Target: Raised to Rs 1,180
The brokerage house said that Symbiomix acquisition could boost women health specialty business. The company derives 20% of its core US sales from women’s healthcare and more deals in women health business space can be expected, it added.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 480
The global financial services firm said that the company responded to Jio’s offer with a calibrated handset bundle offer. It said that the offer is timely and would appreciate subscriber additions. Increase in revenue share could be driven by Telenor operations.
Brokerage: HSBC | Rating: Hold | Target: Rs 421The global brokerage firm said that potential Indus-Infra consolidation may be positive but may not drive any re-rating. In its view, a large part of proceeds from tower sale could be used to repay debt. The feature phone launch shows that the firm is unwilling to provide Jio room to gain market share.