Cipla rises 3%; Citi maintains buy with target Rs 725
Share price of Cipla rose 3.5 percent intraday Tuesday as brokerage house Citi has maintained buy rating on the stock with a target of Rs 725.
Citi said that the firm is a top pick as we see shift forward in its US generics journey. It expects upside from operating leverage given low base, suppressed profitability.
It expecting operating leverage could drive healthy growth over the next few years.
The company’s US generics journey has started to pay-off, with three approvals over the last few weeks, it added.
The firm expects meaningful upside given company’s low base and suppressed profitability in the US. This is one of the few Indian companies which is likely to witness decent momentum in the US.
The company had reported better-than-expected consolidated profit growth of 17.7 percent for the quarter ended September 2017 at Rs 435 crore against Rs 370 crore in year ago period.
At 11:38 hrs Cipla was quoting at Rs 621, up Rs 18.40, or 3.05 percent on the BSE.
Posted by Rakesh Patil