HSBC downgrades Cipla to 'hold', target price Rs 450

HSBC has downgraded Cipla to hold from buy on limited visibility on US business growth drivers and lowered target price to Rs 450 from Rs 525. The brokerage earlier liked Cipla for its stable outlook in focus markets, India and South Africa, but now believes it will be a tall task for Cipla to turn around US sales that are required to improve profitability. The brokerage has lowered its valuation multiple to 18 times from 20 times on uncertainties around US sales scale-up. The stock ended down 0.2% at Rs 421.45 on Thursday.