Dr.Reddy’s Laboratories (RDY) Upgraded at Zacks Investment Research

Dr.Reddy’s Laboratories (NYSE:RDY) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Monday. The firm presently has a $43.00 price target on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 18.03% from the stock’s current price.

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 cut shares of Dr.Reddy’s Laboratories from a “hold” rating to a “sell” rating in a report on Thursday, October 4th.

RDY stock traded down $0.57 during trading on Monday, reaching $36.43. The company had a trading volume of 10,154 shares, compared to its average volume of 310,462. Dr.Reddy’s Laboratories has a 52 week low of $28.13 and a 52 week high of $39.96. The company has a market cap of $6.14 billion, a P/E ratio of 36.05 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 (NYSE:RDY) last released its quarterly earnings results on Friday, October 26th. The company reported $0.42 earnings per share (EPS) for the quarter. The company had revenue of $524.00 million during the quarter, compared to the consensus estimate of $522.22 million. Dr.Reddy’s Laboratories had a net margin of 10.62% and a return on equity of 13.14%. On average, equities research analysts expect 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 the business. Commonwealth Bank of Australia grew its holdings in Dr.Reddy’s Laboratories by 1.9% in the third quarter. Commonwealth Bank of Australia now owns 1,793,360 shares of the company’s stock worth $62,047,000 after purchasing an additional 33,166 shares during the period. BlackRock Inc. grew its holdings in shares of Dr.Reddy’s Laboratories by 11.3% during the third quarter. BlackRock Inc. now owns 1,735,559 shares of the company’s stock valued at $60,049,000 after buying an additional 175,791 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Dr.Reddy’s Laboratories by 9.9% during the third quarter. Dimensional Fund Advisors LP now owns 918,416 shares of the company’s stock valued at $31,792,000 after buying an additional 82,589 shares during the last quarter. Advisors Asset Management Inc. grew its holdings in shares of Dr.Reddy’s Laboratories by 29,814.7% during the second quarter. Advisors Asset Management Inc. now owns 863,638 shares of the company’s stock valued at $119,000 after buying an additional 860,751 shares during the last quarter. Finally, Renaissance Technologies LLC grew its holdings in shares of Dr.Reddy’s Laboratories by 36.5% during the third quarter. Renaissance Technologies LLC now owns 783,300 shares of the company’s stock valued at $27,102,000 after buying an additional 209,490 shares during the last quarter. Institutional investors and hedge funds own 12.40% of the company’s stock.

Dr.Reddy’s Laboratories Company Profile

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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