Jefferies upgrades Alkem Laboratories stock rating to Buy on growth pivot

Published 13/08/2025, 08:10
Jefferies upgrades Alkem Laboratories stock rating to Buy on growth pivot

Investing.com - Jefferies has upgraded Alkem Laboratories Ltd (NSE:ALKE) (ALKEM:IN) stock rating from Underperform to Buy and significantly raised its price target to INR6,000.00 from INR4,460.00.

The upgrade follows Alkem’s strong first-quarter fiscal year 2026 results, which exceeded Jefferies’ estimates with robust revenue growth and improved margins.

Despite the impressive quarterly performance, Alkem has maintained its unchanged fiscal year 2026 guidance, though Jefferies indicates there may be upside risk to the company’s projections.

Jefferies highlighted Alkem’s "pivot towards accelerating growth" as "refreshing" and noted this strategic shift is already evident in the first-quarter results.

The new price target of INR6,000 is based on 26 times September 2027 earnings per share, with Jefferies increasing its fiscal years 2026-2027 EPS estimates by 1-3%.

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