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Investing.com - Jefferies upgraded Divi’s Laboratories Ltd (DIVI:IN) stock rating from Hold to Buy on Monday, while raising its price target to INR7,150.00 from INR6,750.00.
The upgrade comes as Divi’s custom synthesis segment, which represents 52% of the company’s sales, rebounded with 19% year-over-year growth in FY25 after experiencing volatility during FY22-24, according to Jefferies.
Jefferies expects the custom synthesis growth to continue at a 16% compound annual growth rate (CAGR) through FY28, supported by Sacubitril Valsartan, GLP-1 launches, China+1 tailwinds, and Big Pharma partnerships.
The research firm projects some near-term volatility in the custom synthesis segment but anticipates new launches in generics will lead to growth recovery for the company.
Jefferies forecasts Divi’s Laboratories will achieve 14% sales CAGR and 20% EBITDA CAGR from FY25 through FY28.
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