Macquarie believes the recent correction in pharmaceutical formulation stocks triggered by tariff-related concerns presents a compelling buying opportunity. In its latest sector note, the brokerage has identified Sun Pharma, Cipla, and Lupin as its top buy ideas within the formulations space, citing resilient fundamentals and favorable long-term outlook.
Additionally, Macquarie remains optimistic on the contract development and manufacturing organization (CDMO) segment, which it believes stands to benefit from both secular growth trends and regulatory tailwinds. Within this space, Divi’s Laboratories and Suven Pharma have been highlighted as the firm’s preferred stocks.
However, the brokerage holds a bearish stance on hospital stocks, noting that the majority of these companies have underperformed broader indices over the past year. It sees limited upside in the near term and has issued Sell ratings on Apollo Hospitals and Max Healthcare, flagging concerns over valuations and sector-specific challenges.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.
