Morgan Stanley raises Biocon to 'overweight', stk gains 2%
Morgan Stanley said improving base business fundamentals should help Biocon deliver mid-teens growth, and there were other growth platforms in the pipeline like human insulin, monoclonocal antibodies and immuno-suppressants.
July 22, 2013 / 14:27 IST
Moneycontrol Bureau
Morgan Stanley upgraded biotechnology company Biocon to "overweight" from "equal-weight" on Monday and also raised its target price to Rs 392 from Rs 283, sending the stock up more than 2 percent."Improving base business fundamentals should help deliver mid-teens growth," analysts Sameer Baisiwala and Saniel Chandrawat, say in a report, adding current stock valuations are also inexpensive.They also cite several other growth platforms in the pipeline, including insulin, monoclonal antibodies in the emerging markets and immuno-suppressants, which hold the key to medium-term earnings."We believe that the company is making meaningful progress in developing human insulin. We expect insulin launch in the European Union by 2016 at the earliest," Baisiwala and Chandrawat say.Biocon's improving preparedness will benefit from the global opportunities in bio-similars in the years ahead, they add.Biocon shares were up 2.6 percent at Rs 313.50 on NSE in morning trade.Also Read: Wockhardt plunges 10% on US FDA warning letter Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
