PINC hikes target price for Sun Pharma, Effexor maintains 'sell' rating

CMP: Rs 1,189.30
Target price: Rs 1,070

PINC has hiked its target price for Sun Pharma to Rs 1,070 from Rs 973, citing one time opportunities from generic drugs like Oxaliplatin and Effexor XR but maintained its ���sell��� rating on the stock as it expects base business in the US to remain weak.

���Our sell is on concerns of expensive valuations and inadequacy of a margin of safety for execution challenges in the US,��� the brokerage said in a note to its clients.

While a 26% under performance to the Sensex over the past three months has seen part of their concern on valuations abated, PINC sees near-term performance being driven by the non-US business ��� India primarily and to a lesser extent the rest of the world markets.

���Our new target incorporates upsides from Effexor XR (assumed launch in September ���09) and Oxaliplatin (immediate launch),��� the note added.