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HomeMarket NewsJPMorgan downgrades this drugmaker, cuts price target by 19% citing growth challenges
Of the eight analysts who have coverage on the Abbott India stock, six have a 'buy' rating, while one each have 'hold' and 'sell' ratings.
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Shares of Abbott India Ltd. gained on Wednesday, April 15, even as brokerage firm JPMorgan reduced its rating and cut its target price by 19.11%.
JPMorgan has downgraded the stock to 'neutral' from 'overweight' and has cut its target price to ₹27,500 per share from the previous ₹34,000 apiece.
It said the company has a lower target multiple due to growth challenges. Limited new launches, Mixtard phase-out and GLP-1 impact will weigh on its growth, JPMorgan said.
Also, frequent MD resignations raise strategic uncertainty, it added.
The stock's valuation is reasonable but growth outlook doesn't justify its premium, JPMorgan said in its note, and therefore, the brokerage cut its target multiple to 30 times from 37 times one-year forward earnings, in-line with peers.
On another note, in February, Abbott India said it has partnered with Novo Nordisk to market a new brand of semaglutide in India, amid rising demand for advanced metabolic treatments.
Abbott India said it would commercialise the drug under the brand 'Extensior' in India.
Of the eight analysts who have coverage on the Abbott India stock, six have a 'buy' rating, while one each have 'hold' and 'sell' ratings.
Despite the downgrade and a cut in price target, shares of Abbott India were trading 1.2% higher on Wednesday at ₹26,025. The stock is down close to 10% so far in 2026.
Also Read: Here's why shares of this Murugappa Group company surged over 5% on Wednesday
