Sun Pharma bets on nurturing specialty portfolio outlook; stock rises 3.6%

Street is bullish on stabilising US generics sales, upsides from niche portfolio, and inexpensive valuations

From its lows earlier this month, Sun Pharmaceutical Industries has gained about 15 per cent. An upgrade rating by foreign brokerage Morgan Stanley has been one of the triggers for the stock. The stock gained about 3.61 per cent on Monday. 

Analysts believe the stock’s risk-reward is favourable now versus earlier when it had to deal with a multitude of issues from increased competition in the US — its key market — repeated regulatory lapses, drug pricing lawsuits, and corporate governance concerns. While valuations remain attractive, the company is expected to report improved performance for the second consecutive quarter. 

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