Shares of Dr. Reddy's Laboratories traded up 2.2% after Citi upgraded its rating to buy, pushing the stock to an intraday high of ₹1,247.7 on the NSE.
Citi's new target price of ₹1,450 replaces the previous ₹1,040, implying an upside of 18.8% from the last closing price.
The brokerage also bumped its earnings estimates for FY27, FY28 and FY29 by 2%, 5% and 19% respectively, citing the expected $350–400 million boost from the Abatacept biosimilar and Semaglutide Canada launch.
Model North America revenue is projected at $900 million, excluding the new products, and margins are forecast to climb from 14% in FY27 to 20% in FY29, a 150‑basis‑point expansion driven by operating leverage.
Out of 42 analysts covering the stock, 17 hold a buy rating, 10 a hold and 15 a sell; the shares have gained 8% over the past month, yet dipped 0.4% YTD.
Citi remains bullish, estimating that launch of Abatacept and Semaglutide could contribute 400–500 basis points to margin expansion, and investors will watch the upcoming earnings release on September 30 for confirmation.