Up 103% from 52-week low, this largecap pharma stock is double upgraded by Jefferies to buy

Shares of Zydus Lifesciences will gain traction in Wednesday's trade (August 28) as global brokerage firm Jefferies double upgrades the largecap pharma stock. In the pre-opening session, the stock was up over 2 per cent at Rs 1,147.05 per share.

At the last count, at around 10:01 am, shares traded higher by around 2 per cent at Rs 1,132.55, while at the day's high it gained up to 4 per cent to Rs1,156.45. The stock's 52-week high and low prices are Rs 1,323.9 and Rs 567.85 per share, respectively. 

What Jefferies make of Zydus Lifesciences stock?

Jefferies has double upgraded the stock to a 'buy' from the earlier 'hold' call and a raised target price of Rs 1,450 from the earlier target of Rs 1,210, implying substantial gains of over 30 per cent.

The global brokerage held that the current correction in the stock offers a good entry opportunity in the stock. The stock in 1-week has tumbled over 5 per cent, while in the last 1-month has fallen over 6 per cent.

The rationale for a buy is also given the company's strong product pipeline. The pharma leader intends to make $8- 10 crore launch every year.

Also, the brokerage expects the company's India market to record better sales and margins amid better growth opportunities. In view of all this, the brokerage expects the company to outperform the pharma space.