Barclays upgrades Dr Reddy's to 'overweight'

Global investment major Barclays has upgraded Dr Reddy's Laboratories to "overweight" from "equalweight".

It has maintained its target for the stock at Rs 2,801, saying recent share falls are overdone.

Dr Reddy's shares are down 8.6 per cent so far for the year, as part of a shift to domestic cyclicals from exporters and defensive sectors, compared to a 15.6 per cent gain in the Nifty.

Barclays said Dr Reddy's is now trading at a discount to historical valuations and its peers, while it remains "positive" on the drug-maker's fundamentals.

Shares of Dr Reddy's were trading 0.45 per cent down on the Bombay Stock Exchange in noon trade.

(Reuters)