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UPDATE: Bank of America Downgrades Dr. Reddy's Laboratories to Neutral on Modest Outlook

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Bank of America downgraded Dr. Reddy's Laboratories (NYSE: RDY) from Buy to Neutral with a $36.72 price objective.

Bank of America noted, "Following recent outperformance (vs BSE Healthcare), we downgrade DRL from Buy to Neutral with a revised PO of Rs1975. This factors (1) higher mkt share from recent US launches, reflected in slight increase in core profit estimates, partially offset by (2) sharp cut in exclusivities driving reduction in NPV to Rs25 (vs Rs70 earlier). We expect multiples to be capped due to modest growth prospects (12% profit CAGR), below historic growth and peers."

Dr Reddy's Laboratories closed at $35.76 on Thursday.

Latest Ratings for RDY

DateFirmActionFromTo
May 2016Goldman SachsInitiates Coverage onNeutral
Feb 2016CLSAUpgradesUnderperformBuy
Dec 2015Deutsche BankInitiates Coverage onSell

View More Analyst Ratings for RDY
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Analyst Ratings

 

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