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Bloomberg Quint

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Image Credit: Bloomberg Quint

Divi's Laboratories Gets 'Buy' Upgrade From HSBC On Strong Growth Prospects — Check Target Price

  • HSBC Global Research has upgraded Divi's Laboratories Ltd. to a 'buy' rating with a target price of Rs 7,900, reflecting a 14.4% upside potential.
  • The upgrade is driven by a more optimistic view of the company's custom synthesis segment, particularly due to its involvement in producing peptide fragments for Eli Lilly's anti-obesity and anti-diabetes drug tirzepatide.
  • HSBC highlighted revenue potential projections for Divi's Laboratories, including around $450 million from peptides and $260 million from contrast media by 2030.
  • Risks associated with Divi's growth prospects were also mentioned, such as potential competition from generics in Entresto and disruptions in tirzepatide supplies once Eli Lilly expands its API capacity in 2026.

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