Sun Pharma rises 1% as Nomura upgrades rating to buy, raises target

Credit Suisse has maintained outperform call on Sun Pharma with a target at Rs 630 per share.

Shares of Sun Pharmaceutical Industries rose 1.6 percent in the early trade on Wednesday after research house Nomura has upgraded its rating and also raised the target price.

According to Nomura, the stock factors in muted expectations around US Generics and specialty ramp-up and risk-reward is favourable post the correction.

It has upgraded the stock to buy from neutral rating and raised target to Rs 516 from Rs 513 per share.

It forecasts EBITDA growth of 20-25 percent and EPS growth of 25-30 percent over FY19-21, while lowers the FY20 EPS estimate by 10.5 percent.

The stock is already trading below earnings based valuation. While regulatory scrutiny on whistle-blower allegations is most difficult to quantify, said Credit Suisse.

At 09:21 hrs Sun Pharmaceutical Industries was quoting at Rs 427.45, up Rs 5.65, or 1.34 percent on the BSE.

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