Buy Dr. Reddy's Laboratories, target Rs 3,735: CLSA
The pharma major is monetising products in the USA plus above-average growth in India, will push up ROIC, as per the CLSA report. The global investment bank projects 23 per cent profit CAGR over FY16-18CL.
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| Updated: CLSA maintains a buy rating on Dr. Reddy's Laboratories with a 12-month target price of Rs 3735 as differentiated US products can shift margin profile.
The global investment bank started transitioning beyond simple generics, with a focus on differentiated derma, and central nervous system (CNS).
The pharma major is monetising products in the USA plus above-average growth in India, will push up ROIC, as per the CLSA report. The global investment bank projects 23 per cent profit CAGR over FY16-18CL.
CLSA expects the stock to rerate as earnings growth recovers and FDA issues are resolved. It sees Dr. Reddy's as a Double Bagger in three years.
The global investment bank started transitioning beyond simple generics, with a focus on differentiated derma, and central nervous system (CNS).
The pharma major is monetising products in the USA plus above-average growth in India, will push up ROIC, as per the CLSA report. The global investment bank projects 23 per cent profit CAGR over FY16-18CL.
CLSA expects the stock to rerate as earnings growth recovers and FDA issues are resolved. It sees Dr. Reddy's as a Double Bagger in three years.
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