Shares of pharmaceutical major Cipla rallied as much as 4% to their day’s high of Rs 1,409 on the BSE on Monday after international brokerage firm Citi placed the stock on a 90-day Positive Catalyst Watch while maintaining its ‘Buy’ rating and target price of Rs 1,700, an upside of 25.55% from current levels.
The Wall Street brokerage believes several near-term triggers could support the stock, including the likely approval of gFlovent from the Goa facility, which could boost growth in the US market, and the expected launch of gVentolin. Citi also noted that Cipla's Nintedanib has captured nearly 50% market share in the US, while the company's US business is poised for a revenue rebound following recent weakness.
