Sun Pharma up as brokers welcome Ranbaxy purchase

Shares in Sun Pharmaceutical Industries gain as much as 7.95 percent, adding to their 2.9 percent rise on Monday, as brokers upgrade the stock after Sun agreed to buy Ranbaxy Laboratories Ltd for $3.2 billion.

Sun Pharma is heading for its biggest single-day percentage gain since May 2009. UBS upgraded Sun Pharma to "buy" from "neutral" and raised its target to 720 rupees for 660 rupees on Wednesday, citing the expected contribution to earnings from Ranbaxy.

"We believe the deal makes sense given limited overlap for Sun and Ranbaxy in India and Sun's limited presence in ROW (rest of world) markets, UBS said in a report dated Tuesday, adding Sun would be able to cut administrative and research and development costs.

On Monday, Bank of America Merrill Lynch also upgraded Sun Pharma to "buy" from "neutral", citing a higher price-to-earnings multiple after Ranbaxy's acquisition.

Ranbaxy shares gained 2.2 ercent.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The current value of the rupee does not merit market intervention

    The rupee, losing 40 paise per month against the dollar since May, is expected to remain under pressure till the calendar runs out on December 31, bef

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture