Wockhardt rises 5% on Citi upgrade post firm Q3 results

Moneycontrol Bureau

Shares of Wockhardt rose 5 percent intraday on Monday after Citi upgraded the stock to buy from sell. The brokerage has also revised its target price to Rs 1880 per share following firm December quarter results.

Citi has even increased its FY16-17 core EPS by 2/10 percent based on progress on regulatory front and stated that resolution of 483s at Morton Grove is positive. It also adds that risk-reward looks reasonable for Wockhardt.

Meanwhile, last week Macquarie also had upgraded Wockhardt to outperform from neutral with a revised one-year target of Rs 1700 (from Rs 410) per share. The brokerage had a cautious view on the stock for past year, awaiting better visibility by regulatory issues and future approvals but Form 483 issued by the US FDA in early 2014 on the Morton Grove US facility has now been resolved, which provides significant comfort around the sustainability of the remaining US business.