Street Calls of the Week
Investing.com - JPMorgan initiated coverage on Divi’s Laboratories Ltd (NS:DIVI) with an Overweight rating and a price target of INR7,800, citing the company’s expansion into high-growth areas including peptides and GLP-1 treatments.
The investment bank highlighted Divi’s position as India’s largest contract development and manufacturing organization (CDMO) with leadership in custom synthesis and active pharmaceutical ingredients (APIs) since its founding in 1990.
JPMorgan forecasts robust revenue and earnings per share compound annual growth rates of 16% and 20%, respectively, over fiscal years 2025-2028, despite acknowledging near-term softness in generics pricing and Entresto loss of exclusivity challenges.
The price target of INR7,800 represents a multiple of 55 times March 2028 estimated earnings per share, reflecting confidence in the company’s growth trajectory.
The research note emphasized Divi’s diversified portfolio, expanding pipeline, and investments in Unit III capacity as key factors supporting its medium-term growth outlook, while noting the company’s scale, compliance record, and innovation make it "the strongest and most resilient player in the space."
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