Nomura has upgraded Zydus Life to Buy and raised the target price to ₹1,140, offering a 16% upside from the current market price of ₹980.00.
Key Highlights:
- Earnings boost expected due to higher contributions from Sitagliptin 505b(2).
- Sitagliptin’s market size is estimated at $300-500 million, with Zydus potentially capturing an annualized opportunity of $100-150 million at discounted pricing.
- Forecasts a 5% decline in US revenues for FY26 compared to FY25 but notes positive growth guidance for FY26 despite generic competition in gRevlimid.
- Zydus benefits from the appreciating USD, as 77% of FY27F exports are projected to come from the US market.
Nomura remains optimistic about Zydus Life’s ability to navigate competition while leveraging growth in the US and Sitagliptin opportunities.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investment decisions.
