Foreign brokerage CLSA has downgraded to ‘underperform’ while Morgan Stanley has maintained its underweight stance on . On Dr Reddy’s Labs (DRL), Morgan Stanley has an ‘overweight’ stance.
On Lupin, CLSA said Q4 was another disappointing quarter and that challenges persisted on the margins front. Key markets of India and US undershoot expectations, it said while suggesting weak near-term outlook. While expecting margin recovery only in the second half of FY23, the brokerage has cut its FY23-24 EPS estimate for Lupin by 18 per cent to reflect the margin concern. The brokerage has a target of Rs 600 on the stock.
On Lupin, CLSA said Q4 was another disappointing quarter and that challenges persisted on the margins front. Key markets of India and US undershoot expectations, it said while suggesting weak near-term outlook. While expecting margin recovery only in the second half of FY23, the brokerage has cut its FY23-24 EPS estimate for Lupin by 18 per cent to reflect the margin concern. The brokerage has a target of Rs 600 on the stock.
In the case of DRL, Morgan Stanley said that the drug maker continued to deliver granular growth and that the growth trend should continue in FY23.
DRL continues to invest in complex generics, biosimilars, it said, adding that the stock is available at reasonable valuations, which is driving its overweight stance. This brokerage sees DRL stock at Rs 5,202.
Meanwhile, Morgan Stanley has maintained ‘underweight’ on
as Q4 earnings missed consensus estimates on the margin front. The performance was weak in international business while the near term weak earnings outlook is the key negatives, it said while suggesting a target of Rs 700 on the stock.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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