Jefferies Downgrades Dr. Reddy's Laboratories (RDY) to Underperform

Jefferies downgraded Dr. Reddy's Laboratories (NYSE: RDY) from Hold to Underperform with a price target of $41.90 (from $45.00).

Analyst Piyush Nahar commented, "DRRD results confirmed our fears of a sharp earnings hit for Indian generics given the increased pricing pressure and concentrated portfolio in US. US business declined 20% YoY and margins fell to 4%. Management indicated that there are more headwinds ahead. With other businesses also under-performing, we cut our FY17-18 earnings estimates by 28%-14%. We now expect earnings to remain flat over FY16-18 and downgrade the stock to Underperform with TP of Rs 2850."

For an analyst ratings summary and ratings history on Dr. Reddy's Laboratories click here. For more ratings news on Dr. Reddy's Laboratories click here.

Shares of Dr. Reddy's Laboratories closed at $44.11 yesterday.

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Piper Sandler Reiterates Overweight Rating on Patterson-UTI Energy (PTEN)
• Bernstein SocGen on Meta Platforms Inc. (META): 'Risk-reward remains attractive'