Five reasons why Morgan Stanley has turned bullish on Sun Pharma

The global brokerage firm said Sun Pharma was its top pick in its Indian healthcare coverage and sees 27 per cent upside potential in the stock

Sun Pharma rose 4 per cent to Rs 424.50 in Monday's early trade after Morgan Stanley upgraded the stock to 'overweight' and raised its target to Rs 505 per share from Rs 470 per share.

The brokerage firm said Sun Pharma was its top pick in its Indian healthcare coverage and sees 27 per cent upside in the stock. The brokerage firm also listed possible risks to the stock achieving the price target, which includes cost escalation in FY21, a lack of niche US launch, a material slowdown in India/Emerging Market (EM) businesses, a lack of take-up of Ilumya, a worsening