Dr Reddy's share: Jefferies sees 12% downside after Q1 miss, cuts target to Rs 1,100
Jefferies has maintained its Underperform rating on Dr. Reddy's Laboratories, lowering expectations with a target price of ₹1,100 per share. This implies a 12% downside from the current market price of ₹1,248.00.
The brokerage flagged that Q1FY26 earnings missed estimates, primarily due to lower US sales, which were impacted by a sequential decline in both the gRevlimid contribution and the base business. In contrast, performance in other markets was largely in line with expectations.
Jefferies also noted that SG&A expenses and R&D investments remained elevated during the quarter, weighing on profitability.
Looking ahead, the brokerage is closely watching two pipeline triggers: Approval of gOzempic in Canada
U.S. filing for Abatacept
Jefferies has built in a timely launch and meaningful sales contribution from both products into its base case but remains cautious due to the near-term headwinds.
Disclaimer: The brokerage views expressed above are those of Jefferies. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
Ahmedabad Plane Crash
News desk at BusinessUpturn.com
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