Reuters Market Eye - Morgan Stanley downgrades Cipla Ltd to "underweight" from "equal-weight" and reduces its target price on the stock to 386 rupees from 414 rupees citing slower growth prospects and valuations.
The bank adds that the drugmaker's move to build a marketing and sales front-end operation in the United States and Europe will yield results only in the longer term.
Morgan Stanley's downgrade comes a day after Macquarie upgraded Cipla to "outperform" from "neutral", saying the drugmaker's April-June earnings were "significantly above" their estimates.
Cipla on Saturday posted an 18.5 percent jump in April-June net profit to 4.75 billion rupees.
Cipla shares are up 1.8 percent at 12.14 p.m.
(Reporting by Abhishek Vishnoi)
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