Sun Pharmaceutical Industries Ltd. shares surged nearly 3% on strong investor sentiment after Citi reiterated its buy rating for the stock, setting a target price of ₹2,180 per share. The brokerage highlighted that key overhangs related to trade and pricing risks have eased significantly, boosting confidence in the company’s growth prospects.
Citi noted that the removal of the Most Favoured Nation (MFN) overhang following the Pfizer deal, along with stable Medicare and commercial drug prices, has reduced concerns surrounding Sun Pharma’s Ilumya portfolio.
In addition, clarifications from the White House have eased tariff risks on patented drugs, removing a major geopolitical headwind that had previously weighed on investor sentiment. Citi emphasized that these developments significantly lower external risks, improving earnings visibility for the company.
The brokerage remains positive on Sun Pharma’s strong specialty drug pipeline and continued execution in global markets. With geopolitical uncertainties easing and pricing pressures stabilizing, the stock is expected to maintain its growth trajectory, supported by expanding margins and a healthier risk environment.
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