Shares of Cadila Healthcare fell over 3.5 percent intraday as investors turned wary of the stock following a ratings downgrade. A weakness in the overall pharmaceutical space also spilled over to the stock.
Broking firm IIFL downgraded its rating on the stock to reduce from add along with a reduction in the target price to Rs 400 from Rs 460, implying a downside of around 13 percent.
The firm said that Cadila’s stock was already pricing in an upside from big launches. However, its valuations were stretched and at a significant premium compared to its large peers.
The brokerage house also cut FY18/19 EPS estimates by 11%/14% to factor in the Lialda AG launch by the innovator.
Broking firm IIFL downgraded its rating on the stock to reduce from add along with a reduction in the target price to Rs 400 from Rs 460, implying a downside of around 13 percent.
The firm said that Cadila’s stock was already pricing in an upside from big launches. However, its valuations were stretched and at a significant premium compared to its large peers.
The brokerage house also cut FY18/19 EPS estimates by 11%/14% to factor in the Lialda AG launch by the innovator.
No comments:
Post a Comment