Most analysts raise target prices on Sun Pharma after strong Q2
CLSA, which raised the target price on Sun Pharma the most, said the drug maker's results were above estimates with key geographies performing well. Sun Pharma shares ended down 3.3% at ₹788 on Wednesday.
By ET Bureau | Updated:
Mumbai: Most brokerages have raised their target prices on Sun Pharmaceutical Industries after the drugmaker reported a 12.9% increase in profit for the September quarter at ₹2,047 crore.
Jefferies, Nomura, CLSA and Macquarie have raised target prices by over 3-9%.
CLSA, which raised the target price on Sun Pharma the most, said the drug maker's results were above estimates with key geographies performing well. Sun Pharma shares ended down 3.3% at ₹788 on Wednesday.
"With a pipeline of four products at various stages of clinical trials, the recent launch of anti-acne drug Winlevi, along with the ramp-up of existing products Ilumya and Cequa, Sun is well placed to boost speciality sales and achieve Ebitda breakeven in FY23," said CLSA. The brokerage has raised earnings estimates for FY22-FY24 period by 4-11%.
While CLSA, Edelweiss, Nomura, Macquarie and Morgan Stanley have retained bullish ratings, Jefferies has retained underperform and Goldman Sachs has recommended a sell rating.
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Lowering earnings estimates for FY22 and FY23 by 5% and 4% respectively, Jefferies said Sun Pharma's margins have peaked and are likely to move downwards.
