The price target implies a potential upside of nearly 15% from the stock’s last closing levels on Thursday.
The foreign brokerage firm said that Divi’s Laboratories is well-positioned from a tactical as well as a structural point of view.
Entresto API Outlook: Sales can increase rather than Street expectations of a decline.
Post-Patent Opportunities: Divi’s is expected to supply generic manufacturers globally, including in the U.S., after patent expirations.
Contrast Media Pipeline:
Current revenue of $70-80 million comes primarily from Iopromide.
Two additional products, Gadobutrol and Iodixanol, are in the validation phase and nearing commercialization.
Revenues from contrast media are projected to grow significantly in the next few years.
Divi’s Laboratories recently exited the Nifty 50 index, along with LTIMindtree, having being replaced by Trent and Bharat Electronics.
Out of the 28 analysts that have coverage on Divi’s Laboratories, 10 of them have a ‘Buy’ rating on the stock, while five of them say ‘Hold’ and 13 has ‘Sell’ rating.
Citi’s price target of ₹6,850 is the second highest in the Street. As many as nine analysts who have coverage on the stock have a price target in excess of ₹6,000.
Shares of Divi’s Laboratories were trading 3.94% higher on Friday at ₹6,186.55. The stock has risen 58% so far this year.
