Macquarie believes that the recent correction in pharma stocks due to US tariff threats provides an attractive buying opportunity, particularly in formulations and CDMO (Contract Development and Manufacturing Organization) segments.
Top Buy ideas:
- Formulations: Sun Pharma, Cipla, and Lupin, as they are well-positioned to leverage secular growth drivers.
- CDMO Stocks: Divi’s Labs and Suven Pharma, benefiting from regulatory tailwinds and robust demand.
However, Macquarie remains bearish on hospital stocks, noting that the majority have underperformed the broader indices over the past year.
Top Sell ideas:
- Apollo Hospitals
- Max Healthcare
The brokerage believes that valuation concerns and growth headwinds make hospital stocks less attractive in the current environment.
