Share price of Lupin rose 5% early trade after rating firm Morgan Stanley raised its target price to Rs 948 per share and initiated an overweight call on the stock.
Following the upgrade, shares of Lupin opened with a gain of 5.16% and touched an intraday high of Rs 589.8, rising 5.3% on BSE today.
Stock price of Lupin currently trades higher than its 5-day moving averages but lower than 20, 50, 100 and 200-day moving averages.
The stock gained 2.3% in Monday's trading session to close at Rs 560.10 as the pharma major announced the receipt of the Establishment Inspection Report (EIR) from USFDA for its Inhalation Research Center located at Coral Springs, Florida.
As per the filing, the Florida facility was inspected by the USFDA, between February 19-26, 2020, on behalf of the UK MHRA for Lupin's generic Fostair application to the UK MHRA.
Post this, MS said Fostair & bEnbrel are the two niche drugs planned for Europe in H2FY21 and that it expects Fostair to be a limited competition product. The brokerage firm upgraded the stock to outperform and increased the target price to Rs 948 per share.
Motilal Oswal has also kept a buy rating on the stock with a target of Rs 815. Though the near-term outlook is weak, the company has steady footing compared to the industry in the branded domestic formulation (DF) and robust ANDA pipeline, the brokerage said.
CLSA has upgraded Lupin from Sell to Outperform with a revised target price to Rs 660 from Rs 600 earlier.