BofA-Merrill initiates Wockhardt with 'buy'

Says stock will benefit from likely exit from CDR, improved cash flows that could allow Wockhardt to turn debt-free by FY15

Shares in Wockhardt Ltd gain 1.5 percent to 1,936.70 rupees after Bank of America-Merrill Lynch initiates coverage on the stock with a "buy" rating and a target price of 2,565 rupees.

BofA-Merrill says the stock will benefit from a "likely" exit from a debt restructuring process, improved cash flows that could allow Wockhardt to turn debt-free by fiscal 2015, a recovery in domestic growth, and "consistent" earnings surprises.