Broker's call: Cadila Healthcare
Credit Suisse has initiated coverage on Cadila Healthcare with an ‘Outperform’ rating with a target price of Rs 970 with a 21.4% upside.
By ET Bureau | Updated:
Cadila to Outperform: Credit Suisse
Credit Suisse has initiated coverage on Cadila Healthcare with an ‘Outperform’ rating with a target price of Rs 970 with a 21.4% upside. Cadila is a mid-sized firm with presence across the US, Europe and emerging markets, and has sales > $1 billion. New approvals for the US were blocked till now due to a warning letter for Moraiya facility, which was resolved on July 17. The clearance of the facility should kick-start approvals of low-competition products and should drive a re-rating. Cadila has a higher earnings CAGR (21%) vs. large-cap peers, and RoCE may improve from 16% in FY12 to 21% in FY15.
Credit Suisse has initiated coverage on Cadila Healthcare with an ‘Outperform’ rating with a target price of Rs 970 with a 21.4% upside. Cadila is a mid-sized firm with presence across the US, Europe and emerging markets, and has sales > $1 billion. New approvals for the US were blocked till now due to a warning letter for Moraiya facility, which was resolved on July 17. The clearance of the facility should kick-start approvals of low-competition products and should drive a re-rating. Cadila has a higher earnings CAGR (21%) vs. large-cap peers, and RoCE may improve from 16% in FY12 to 21% in FY15.
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