HDFC Securities has upgraded stock rating on Cipla to Buy from Neutral. The stock broker has assigned target price of Rs 673.

Commenting on the investment rationale, the stock broker said,' Cipla's (CIPL) launch of much awaited combination inhalers has led to a sharp move in the stock price (~5-7%). Though the news seems to be priced in and the stock looks expensive at ~22x FY16E earnings, we expect CIPLs PEx to expand further.

The global respiratory market is worth ~US$35 billion, with US and EU accounting for ~50%. CIPL's progress in launching generic Advair instills confidence of further launches. We upgrade to Buy with a TP of Rs 673, 24x FY16E EPS of Rs 24.6 and an NPV of Rs 82 for inhalers.'

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