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

Bank of America downgraded Dr. Reddy's Laboratories 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.