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BW Businessworld

Morgan Stanley Downgrades Cipla To "Underweight"

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Morgan Stanley downgrades Cipla to "underweight" from "equal-weight" and reduces its target price on the stock to Rs 386 from Rs 414 citing slower growth prospects and valuations.

The bank adds that the drugmaker's move to build a marketing and sales front-end operation in the US and Europe will yield results only in the longer term.

Morgan Stanley's downgrade comes a day after Macquarie upgraded Cipla to "outperform" from "neutral", saying the drugmaker's April-June earnings were "significantly above" their estimates.

Cipla on Saturday posted an 18.5 per cent jump in April-June net profit to Rs 475 crore. Cipla shares are up 1.8 per cent at 12.14 p.m.