Most analysts raise target prices on Sun Pharma after strong Q2

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

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.
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.