Zacks Investment Research upgraded shares of Dr.Reddy’s Laboratories (NYSE:RDY) from a hold rating to a strong-buy rating in a report published on Monday morning. Zacks Investment Research currently has $43.00 target price on the stock.
According to Zacks, “Dr. Reddy’s enjoys a strong position in the generics market. As of Sep 30, 2018, Dr. Reddy’s had 113 generic filings (110 abbreviated New Drug Applications [ANDAs] and three new drug applications) that are pending for the FDA approval. Of these ANDAs, 63 were Para IV filings and 32 have first-to-file status. Approval of new generics should further bolster the portfolio. The company is also making inroads in the lucrative biosimilars market. In addition, the company’s focus on operational efficiencies helped in significantly improving its margin profile. Shares have underperformed the industry year to date. However, price erosion in North America Generics market still persists. The European market is also witnessing a decline due to higher price erosion in some of the key molecules. Dr. Reddy’s is undertaking strategic measures to combat these challenges.”
Separately, ValuEngine upgraded shares of Dr.Reddy’s Laboratories from a sell rating to a hold rating in a research note on Friday, August 10th.
Shares of RDY opened at $38.29 on Monday. The stock has a market cap of $6.11 billion, a price-to-earnings ratio of 38.03 and a beta of 0.12. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.62 and a quick ratio of 1.17. Dr.Reddy’s Laboratories has a 12 month low of $28.13 and a 12 month high of $39.96.
Dr.Reddy’s Laboratories (NYSE:RDY) last announced its quarterly earnings results on Friday, October 26th. The company reported $0.42 EPS for the quarter. The firm had revenue of $524.00 million during the quarter, compared to analysts’ expectations of $522.22 million. Dr.Reddy’s Laboratories had a net margin of 10.62% and a return on equity of 13.14%. As a group, sell-side analysts anticipate that Dr.Reddy’s Laboratories will post 1.42 earnings per share for the current fiscal year.
A number of institutional investors and hedge funds have recently made changes to their positions in RDY. Acadian Asset Management LLC lifted its stake in Dr.Reddy’s Laboratories by 145.5% during the second quarter. Acadian Asset Management LLC now owns 138,426 shares of the company’s stock worth $4,457,000 after purchasing an additional 82,035 shares during the period. State of New Jersey Common Pension Fund D lifted its stake in Dr.Reddy’s Laboratories by 312.5% during the second quarter. State of New Jersey Common Pension Fund D now owns 33,000 shares of the company’s stock worth $1,063,000 after purchasing an additional 25,000 shares during the period. Aperio Group LLC lifted its stake in Dr.Reddy’s Laboratories by 27.1% during the second quarter. Aperio Group LLC now owns 210,645 shares of the company’s stock worth $6,783,000 after purchasing an additional 44,881 shares during the period. TCW Group Inc. bought a new position in Dr.Reddy’s Laboratories during the second quarter worth about $1,871,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new position in Dr.Reddy’s Laboratories during the second quarter worth about $406,000. Hedge funds and other institutional investors own 12.40% of the company’s stock.
About Dr.Reddy’s Laboratories
Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. It operates through three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosage with therapeutic equivalence to branded formulations.
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