JP Morgan has raised its target price for a global pharmaceutical major and upgraded its rating to ‘overweight’. Meanwhile, Goldman Sachs has raised its 12-month target price for a prominent player in the Indian automobile sector.
An ‘overweight’ rating on a stock from a brokerage firm suggests that the brokerage analyst expects the stock to outperform the overall market or its competitors over the next 6-12 months.
Following are two large-cap stocks that experienced price fluctuations after receiving ‘buy’ recommendations from global investment banks JP Morgan and Goldman Sachs:
With a market cap of Rs. 96,584.3 crores, the shares of a global pharma major surged by 3.6 percent on BSE to hit a new 52-week high at Rs. 2,125.3 in the trading session of Friday.
JP Morgan has upgraded Lupin’s rating to ‘overweight’ from ‘neutral’ and increased the target price from Rs. 1,440 to Rs. 2,400 following the company’s robust Q1 FY24-25 performance, representing a potential upside of nearly 14 percent from its current trading price of Rs. 2,113.7.
The brokerage firm sees continued growth potential for Lupin, despite its significant outperformance in the past year.
This outperformance by Lupin has been fueled by strong momentum in its US business, particularly driven by the launch of the respiratory drug Spiriva. This success is complemented by several new product launches and a stable generic pricing environment.
JPMorgan highlights that Lupin’s US drug pipeline remains robust, with key products expected to contribute to a 13 percent revenue CAGR in the US market from FY24-27.
Additionally, the brokerage firm anticipates an improvement in Lupin’s core business margins by nearly 400 basis points, reaching 22 percent in FY26-27, and forecasts a 29 percent core earnings CAGR for the company over FY24-27.
While the US pipeline is promising, JPMorgan also notes that Lupin’s Indian business is gradually returning to double-digit growth, benefiting from better core business margins.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of nearly 16.3 percent from Rs. 4,814 crores in Q1 FY23-24 to Rs. 5,600 crores in Q1 FY24-25.
Similarly, its net profit grew during the same period from Rs. 453 crores to Rs. 806 crores, indicating a growth of 78 percent YoY.
The stock has delivered positive returns of around 92.4 percent in the last one year, as well as nearly 61 percent returns year-to-date.
Incorporated in 1983, Lupin Limited is a transnational pharmaceutical company producing, developing and marketing a wide range of branded and generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) globally.
The company has a significant presence in the cardiovascular, diabetology, asthma, paediatrics, central nervous system, gastrointestinal, anti-infectives and nonsteroidal anti-inflammatory drug therapy segments and is a global leader in the anti-TB and cephalosporins segments.
With a market cap of Rs. 1.32 lakh crores, the shares of a leading player in the Indian automobile industry surged by 6 percent on BSE to Rs. 4,854.3 in the trading session of Friday.
Goldman Sachs has maintained a ‘buy’ rating for Eicher Motors and raised its 12-month target price to Rs. 5,600 from Rs. 5,400, representing a potential upside of nearly 16 percent from its current trading price of Rs. 4,832.85.
The firm highlights significant upside potential driven by the recent Guerrilla launch and the upcoming new Classic model.
The brokerage expects the Guerrilla launch to boost export volumes for Royal Enfield. Additionally, VECV is poised to benefit from a period of reduced taxes, which is projected to enhance the company’s earnings power by 2 percent.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of nearly 10.2 percent from Rs. 3,986 crores in Q1 FY23-24 to Rs. 4,393 crores in Q1 FY24-25.
Similarly, its net profit grew during the same period from Rs. 918 crores to Rs. 1,101 crores, indicating a growth of 20 percent YoY.
The stock has delivered positive returns of around 41.7 percent in the last one year, as well as nearly 20 percent returns year-to-date.
Eicher Motors Limited is engaged in the business of manufacturing, selling and distribution of motorcycles, trading of spare parts and related services.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
