UBS upgrades Ranbaxy to 'buy' from 'sell'

UBS upgrades Ranbaxy Laboratories to "buy" from "sell", saying valuations have turned "attractive" after a recent sharp decline in shares on regulatory concerns.

Ranbaxy shares have fallen more than 30% since May when the company pled guilty to felony charges related to manufacturing practices and for falsifying data in a $500 million settlement with the US Department of Justice.

UBS says it does not expects Ranbaxy to face further disruption in the US business and expressed confidence the drugmaker is taking steps to boost profitability and margins, especially in the US market.

Ranbaxy shares are down 2.9% , underperforming a 0.5%  fall in the Nifty, as the stock continues to be hit by concerns it will face additional US regulatory scrutiny.