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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.
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