Global brokerage firm Jefferies has upgraded Zydus Life to a “Buy” rating, raising its target price to Rs 1,450. This target price for Zydus Life shares implies a 30% upside from the current market price of Rs 1,113 on the NSE. The upgrade comes after a recent correction in the stock, which Jefferies believes presents a compelling buying opportunity.
Jefferies’ investment thesis for Zydus Life is grounded in the company’s robust pipeline in the United States, with expectations of at least one major product launch annually, generating USD 80-100 million in revenue. This strong US pipeline, combined with improved growth prospects in India, is expected to drive sustained elevated sales and margins for the company.
However, Jefferies also cautions that Zydus Life’s high reliance on the US market makes it a high-risk, high-reward investment, due to the volatile nature of the US generics industry. Despite these risks, the firm sees significant potential upside in the stock, given the strength of its upcoming product launches and overall growth strategy.
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