Shares of Lupin rose 7% on Thursday as Kotak Securities upgraded the stock in the hopes of healthy U.S. sales.

Brokerage Views: Kotak Institutional Equities double-upgraded the company to "add" from "sell" with a target price of ₹1,805. Brokerage increased the FY25-FY27 earnings per share estimate by 3-16% on higher U.S. sales and EBITDA margins. 

Kotak expects a 12% year-on-year growth of $914 million (₹7,632 crore) in U.S. Sales and an 11% YoY growth of $1,013 million (₹8,459 crore) in FY25 and FY26 respectively. Drugs like gSpririva and Albuterol are expected to contribute sales of $216 million (around ₹1,803 crore) and $188 million (around ₹1,569 crore) in FY25 and FY26 respectively. 

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Drugs like gMyrbetriq and Tolvaptan are also expected to contribute to sales with Tolvaptan readying for a launch in April 2025. 

Nomura also gave Lupin a "buy" call with a target price of ₹1,952. According to the research firm, gSpririva has been stable for the company with a market share of 30%. gMyrbetriq, launched in April 2024, has already gained a market share of 8.4%. 

Price Action: Shares of Lupin surged 7% on Thursday afternoon to ₹1,746.05.

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