Brokerage impact: Cipla falls on JPMorgan downgrade to 'neutral'; Syngene hits four-year low after Jefferies' downgrade

Brokerage impact: Cipla falls on JPMorgan downgrade to 'neutral'; Syngene hits four-year low after Jefferies' downgrade

• Cipla shares fell after JPMorgan downgrade due to weak Q3 results and US sales drop.
• Syngene International fell 10% after Jefferies downgrade and reduced revenue forecast.
• Syngene hit a four-year low with over 3.5 million shares traded on January 27

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Two pharma stocks fell on January 27 due to brokerage downgrades. While the Cipla stock fell marginally due to JPMorgan's downgrade, shares of Syngene International hit four-year low by tumbling 9% after Jefferies' downgrade.

Cipla shares

Shares of Cipla fell 1.1% to Rs 1,300 on January 27, lowest since January 2024.

JPMorgan downgraded India's No.3 drugmaker to "Neutral" with price target of Rs 1,460 after it reported disappointing Q3 results.

At 12:20 pm on January 27, Cipla shares were trading 0.35% lower at Rs 1,310.7 apiece.

The brokerage said the company's Q3 revenue was 5% below JPMorgan's estimate, mainly due to sharp decline in US sales and weaker African market growth

The company's US revenue fell 26% year-on-year due to sharp decline in sales of its generic version of Bristol-Myers Squibb's cancer drug Revlimid due to its imminent patent expiry and a month long supply chain disruption on key tumour therapy Lanreotide, said the brokerage.

The brokerage said that while Cipla's pipeline offers long-term promise with four respiratory and four peptide assets, it sees material contribution starting only from FY28

The stock fell 0.96% in 2025.

Syngene declines 10%

Shares of Syngene International fall as much as 10% to Rs 490 apiece, lowest level since March 2021.

On Friday, the company slashed FY26 revenue estimate from above 5% to 3-5%.

Jefferies downgraded stock to "Underperform" and slashed price target to Rs 480 from Rs 660.

The brokerage said the contract research firm missed revenue, EBITDA estimates and company's guidance was lowered due to destocking challenges and is likely to impact FY27 too.

Jefferies added that Syngene lacks a meaningful project pipeline, leading to growth stagnation

More than 3.5 million shares traded so far on January 27 versus 30-day average of 717,248 shares.

The stock fell 24.2% in 2025.