Share price of Aurobindo Pharma rose up to 6.18% in trade today after global research firm Credit Suisse upgraded the stock to neutral from underperform and raised target price to Rs 665 from Rs 345 per share. The stock hit an intra day high of Rs 684.25 compared to the previous close of Rs 644.45 on BSE.
However, the stock closed 0.20% lower at Rs 643.15 on BSE. Aurobindo Pharma share traded higher than 5 day, 20 day, 50 day, 100 day and 200-day moving averages.
The large cap stock has gained 40.67% since the beginning of this year but lost 17.4% during the last one year. In one month, the stock has gained 85.35%.
Credit Suisse is of the view that progress on net debt reduction has been good so far but is concerned on low growth outlook with earnings growth seen in single digits.
On Tuesday, the stock rose up to 15% after the pharma firm said US health regulator has decided that the inspection classification of company's injectable formulation manufacturing facility at Hyderabad is voluntary action indicated (VAI).
As per the USFDA, a VAI inspection classification indicates that although investigators found and documented objectionable conditions during the inspection, FDA will not take or recommend regulatory or enforcement action because the objectionable conditions do not meet the threshold for action at this time.
The inspection of Unit IV at Hyderabad, an injectable manufacturing formulation facility of the company, was conducted between November 4-13, 2019 by the United States Food and Drug Administration (USFDA), Aurobindo Pharma said.
By Aseem Thapliyal