Buy Glenmark Pharma, target of Rs 270: Sharekhan
Sharekhan has recommended a buy rating on Glenmark Pharma with a price target of Rs 270 in its April 1, 2009 research report.
“Glenmark has borne the brunt of the ongoing economic and financial crises that have resulted in a slowdown in its business across international geographies. The company has been hit by several negative developments right from the failure of GRC 6211, concerns over its ability to meet guidance, uncertainty over outlicensing income and the policy to refrain from providing guidance. Despite the recent disappointments, we continue to like Glenmarks business model, which is focused on differentiated niche products.”
“We remain confident about Glenmarks future prospects, both in relation to the scaled-up potential of its core generic and branded formulation businesses and its ability to monetise and extract value out of its R&D assets. We upgrade our recommendation on the stock to a Buy with a price target of Rs 270 (12x FY2010 core earnings for base business plus Rs 60 per share for the R&D pipeline),” says Sharekhan’s research report.
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