Sun Pharma has received varied ratings from brokerages, with target prices reflecting differing views on its Q2 performance, strategic investments, and growth potential.
Jefferies: Buy | Target Price: ₹2,150 | Upside: 13%
Jefferies maintains a Buy rating on Sun Pharma, raising its target price to ₹2,150, implying a 13% upside from current levels. The brokerage noted that Sun Pharma’s Q2 EBITDA and profit after tax (PAT) beat estimates, driven by robust growth in the US, specifically in the gRevlimid and specialty segments. Jefferies highlighted Sun’s guidance for high single-digit topline growth for FY25, positioning the year as one of consolidation and investments in specialty areas like Leqselvi.
Goldman Sachs: Sell | Target Price: ₹1,600 | Downside: 16%
Goldman Sachs maintains a Sell rating on Sun Pharma with a target price of ₹1,600, representing a 16% downside. While Q2 performance exceeded expectations with a 24% EBITDA increase year-over-year, Goldman Sachs cautioned that the results reflect one-off gains, including forex benefits and lower R&D costs. Sun Pharma has guided for slower growth due to consolidation and increased investments in its specialty portfolio, factors that may limit short-term profitability, according to Goldman Sachs.
CLSA: Hold | Target Price: ₹1,820 | Upside: 0.95%
CLSA has a Hold rating on Sun Pharma with a target price of ₹1,820, indicating a limited upside. CLSA noted that while Q2 results were solid, Sun Pharma’s growth was bolstered by strong US sales and an 11% year-over-year increase in India sales. With Sun revising down its R&D spending due to delays in clinical trials, CLSA expects steady profitability but advises caution due to potentially constrained R&D investment timelines.
Brokerages are split on Sun Pharma, with Jefferies optimistic about growth in specialty segments, while Goldman Sachs warns of slower near-term growth due to consolidation efforts. CLSA remains neutral, suggesting stable profitability as Sun balances its specialty investments with potential constraints on R&D.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform due diligence before making investment decisions.
