Lupin stock initiated at Equalweight by Morgan Stanley amid turnaround

Published 14/07/2025, 06:42
Lupin stock initiated at Equalweight by Morgan Stanley amid turnaround

Investing.com - Morgan Stanley (NYSE:MS) has initiated coverage on Lupin (NSE:LUPN) (BOM:LPC) with an Equalweight rating and a price target of INR2,096.00, citing the company’s ongoing turnaround efforts.

The investment bank notes that Lupin is showing improvement through recent U.S. product launches and cost control measures that are expected to deliver improved margins in fiscal year 2025.

Despite the positive momentum, Morgan Stanley highlights structural challenges in the U.S. market and persistent competitive pressures that could impact long-term growth.

The firm specifically points to recent exclusive launches such as generic Myrbetriq and generic Jynarque as drivers of earnings momentum in fiscal 2026, but projects a 100 basis point margin contraction in fiscal 2027 as exclusivity periods expire.

Morgan Stanley also identifies ongoing litigation with Astellas Pharma over the at-risk launch of Mirabegron as a key risk to earnings visibility, while noting that Lupin’s current valuation of 23x fiscal 2027 estimated P/E sits below its 10-year historical average of 25x.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.