Cipla has been upgraded to a 'Buy' rating by Prabhudas Lilladher, with a revised target price of Rs 1,730 per share. This upgrade reflects a valuation of 27 times FY27E EPS.

The recent classification of Cipla's Goa facility as Voluntary Action Indicated (VAI) by the US FDA is expected to facilitate the launch of gAbraxane. While there may be a dip in US sales in Q3FY25 due to supply issues with gLanreotide, a recovery in the domestic market is anticipated. Looking ahead, Cipla is expected to launch several high-value niche products in the US during FY26E and FY27E, alongside the normalization of gLanreotide supply.

Compared to its peers, Cipla is projected to maintain stable profitability, which may experience significant declines. With a net cash position of $1 billion, Cipla is well-positioned to explore strategic mergers and acquisitions. The stock has seen a 12% correction from its recent high and is currently trading at 23 times FY27E EPS, indicating potential for growth as critical product launches approach.