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Shares of Dr Reddy's Labs jumped as Morgan Stanley has raised its rating on the stock.
The drug maker shares were trading higher by 6.19 per cent at Rs 2,456.70, highest since August 3. The stock was the top percentage gainer on broader NSE index.
Morgan Stanley has raises its rating to “overweight” from "equal-weight” and the price target to Rs 3,133 from Rs 2,798.
Dr. Reddy's drug pipeline news could intensify and come to fruition in next 4-8 quarters; its US pipeline has strengthened significantly over last three years, say Morgan Stanley analysts.
Its US business accounts for about 50 per cent of total revenues with higher margins than the consolidated company, analysts add.
Of the 40 brokerages covering the stock, only nine rate the stock “buy” or higher, while 15 have “sell” or lower ratings; median price target is Rs 2,455, according to Thomson Reuters.
As of Wednesday's close, the stock had fallen 24.4 per cent this year compared with 9.2 per cent decline in Nifty Pharma index.
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