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On Tuesday, Jefferies analyst Alok Dalal increased the price target for Cipla (NSE:CIPL) Ltd. (CIPLA:IN) shares to INR1,580, up from INR1,560, while maintaining a Hold rating on the stock. The adjustment follows Cipla’s third-quarter results, which surpassed expectations due to robust sales in Emerging Markets (EM) and South Africa (SA). The company’s profit margins were bolstered by an improved product mix.
The report noted a key disappointment with the further postponement of the launches of gAbraxane and gAdvair, two generic drugs, which are now anticipated to enter the market in the second half of the fiscal year 2026. The near-term pipeline for the United States was characterized as weak, with only one significant peptide product expected to launch.
Despite the delay in key product launches, the analyst’s earnings per share (EPS) estimates for fiscal years 2026 and 2027 were slightly adjusted, with an increase of 1-2%. The Hold rating was reaffirmed, reflecting a cautious but stable outlook on Cipla’s stock.
Dalal’s commentary highlighted the company’s performance and the factors influencing the revised price target, stating, "Cipla 3Q numbers were ahead of our estimates on higher sales in EM & SA while margin were supported by better product mix. Key disappointment was further delay in launch of gAbraxane and gAdvair which are now expected to be launched in 2HFY26. US pipeline in near term looks weak with only one meaningful peptide launch. Our FY26/27 EPS estimates change by +1-2%, and we maintain Hold rating with PT of INR1,580."
The revised price target of INR1,580 by Jefferies suggests a modest upside potential for Cipla’s stock, factoring in the current market conditions and company-specific developments. Investors will likely monitor the progress of the company’s product pipeline and the eventual launch of delayed drugs to assess future performance.
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