Nomura has issued a “Buy” rating on Lupin, raising its target price to Rs 2,427, reflecting strong confidence in the company’s growth and profitability prospects across key markets. The brokerage emphasizes that Lupin is likely to attract a premium compared to its peers due to several favorable factors.
Key Drivers of Growth
1. US Generics Support: The US generics market is expected to provide robust support to Lupin’s near-term earnings, bolstered by a strong pipeline of products.
2. Complex Injectable Filings: Lupin has gained traction with several complex injectable filings, which are anticipated to be commercialized over the next two years. This could significantly enhance revenue streams.
3. Litigation-Dependent Upsides: The company has specific litigation-dependent opportunities that may further bolster its earnings in the near term.
4. Revenue Contributions: Nomura has factored in higher revenue contributions from products like Mirabegron in FY25 and Tolvaptan in FY26/27, revising its earnings per share (EPS) estimates upwards by 28% for FY25 and 54% for FY26.
The narrative surrounding Lupin’s US prospects is expected to dominate discussions, particularly concerning potential downside risks related to specific products such as Albuterol MDI. Overall, Nomura’s optimistic outlook highlights Lupin’s strong position in the pharmaceutical market, indicating a promising trajectory for both growth and profitability.
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