Barclays Remains 'Overweight' on Dr Reddy's Laboratories

Barclays has retained its 'Overweight' rating on Dr Reddy's Laboratories and kept its target price of Rs 1,991 untouched after the pharma company tied up with a Merck company. However, the agreement has not changed Barclays' earnings estimates.

“While the agreement looks positive, tapping into DRL's expertise in biosimilars development, it will still take at least three years to see material revenue streams from this, in our view. Hence, we do not make any changes to our FY13E/14E estimates,” analysts led by Balaji Prasad said in a note.