Credit Suisse upgrades Sun Pharma; shares surge

Shares of Sun Pharmaceutical Industries advanced over 4 per cent after global financial services firm Credit Suisse upgraded the pharma major stock to ‘Outperform’ from ‘Neutral’.

Credit Suisse raised target price of Sun Pharma to Rs 595 from Rs 490 earlier.

Shares of the company closed 4.02 per cent up at Rs 502.95. Benchmark BSE Sensex advanced 27 points, or 0.09 per cent, to 32,186.41.

The pharma company earlier said its short-term outlook continues to be challenging and expects a single-digit decline in consolidated revenues for FY18.

“Increased competitive intensity and customer consolidation is leading to pressure on pricing; while continued delay in approvals from the Halol facility is also impacting the company's working," Sun Pharmaceutical Managing Director Dilip Shanghvi said in its annual report.

The company's consolidated R&D investments for FY18 will be about 9-10 per cent of revenues.