Nomura raises Ranbaxy to ‘buy’ on Sun Pharma takeover

Ranbaxy Laboratories Ltd gains 0.2 per cent to Rs 481 after Nomura upgrades the stock to “buy” from “reduce” and raises its target price to Rs 543 from Rs 321 on the back of its takeover by Sun Pharmaceutical Industries.

Although Nomura says Ranbaxy shares look expensive on valuation, it notes the stock should now move in tandem with Sun Pharma, hence the steep increase in its target price.

Ranbaxy shares are trading well above the Sun Pharma offer that valued the takeover target at Rs 457 apiece.

Sun Pharma stock is trading 0.1 per cent higher at Rs 637.30.