Sun Pharma Added to Citi’s Pan-Asia Focus List With 35% Upside Potential

Sun Pharmaceutical Industries Ltd., India’s largest drugmaker, has been added to Citi’s Pan-Asia Focus List, with the brokerage forecasting a major Sun Pharma stock upside. Moreover, Citi reiterated its Buy rating on Sun Pharma and set a price target of ₹2,180 per share—an implied upside of nearly 35% from Wednesday’s close.

Furthermore, the move reflects renewed investor confidence in Sun Pharma, as it is backed by the company’s strong innovation-led portfolio and expanding global growth prospects.

Citi’s Bullish Outlook on Innovation Revenues

Citi projects Sun Pharma’s innovation revenues to climb from $1.2 billion in FY25 to $3.2 billion by FY30, driven by Leqselvi’s strong formulary coverage, Ilumya’s PsA approval, and expanded US Medicare access for its therapies. The brokerage also expects earnings per share for FY27 and FY28 to come in 10–18% above Street estimates, highlighting the strength of Sun Pharma’s specialty drug pipeline.

Attractive Valuations Amid Concerns

Despite lingering investor worries about FY26 earnings, Citi argues that Sun Pharma’s current valuations remain attractive. The brokerage believes that near-term risks are outweighed by the company’s long-term innovation strategy, which could drive meaningful Sun Pharma stock upside in the coming years.

This stance comes at a time when pharma valuations remain volatile, as regulatory approvals and earnings expectations often swing sentiment sharply.

Contrast With BofA’s Bearish Call

Citi’s optimism contrasts with BofA Securities, which recently downgraded Sun Pharma to Underperform and slashed its price target by 9% to ₹1,570. BofA cited two key risks:

• Potential downside to consensus earnings estimates

• Premium valuations that could cap near-term gains

This divergence between Citi and BofA underscores the uncertainty surrounding Sun Pharma’s earnings trajectory, even as long-term growth prospects appear strong.

Analyst Consensus Tilts Positive

Despite BofA’s bearish view, most analysts remain bullish. Of the 44 analysts covering Sun Pharma:

• 35 recommend Buy

• 4 recommend Hold

• 5 recommend Sell

The broad consensus highlights strong confidence in the company’s fundamentals, particularly its leadership position in India and its expanding footprint in global markets.

Market Performance and Stock Movement

On Thursday, Sun Pharma shares ended 0.64% higher at ₹1,620.80. However, the stock remains down nearly 14% year-to-date, underperforming broader indices.

Citi’s new target of ₹2,180 per share suggests potential recovery, especially if Sun Pharma successfully executes its innovation strategy and secures critical regulatory approvals.

Strategic Importance of Innovation

Innovation has become central to Sun Pharma’s growth strategy. By focusing on biologics and specialty drugs, the company is moving beyond traditional generics into high-value therapies. Approvals for new drugs and expansion into regulated markets like the U.S. and Europe could further cement Sun Pharma’s position as a global pharmaceutical leader.

This strategic pivot is expected to underpin long-term value creation and fuel sustained Sun Pharma stock upside.

Outlook: Can Sun Pharma Deliver?

The next few years will be pivotal for Sun Pharma, with success hinging on the adoption pace of Leqselvi and Ilumya, timely regulatory approvals in major markets, and the expansion of U.S. Medicare coverage. Equally important will be management’s ability to sustain earnings growth amid intensifying competition. If these factors align, Citi’s 35% upside forecast could even prove conservative, positioning Sun Pharma as a standout performer in Asia’s pharmaceutical sector.

Conclusion

Citi’s decision to add Sun Pharma to its Pan-Asia Focus List reflects strong conviction in the company’s innovation-led growth strategy. While near-term risks persist, the potential for significant Sun Pharma stock upside makes it a closely watched play in both Indian and Asian markets.

With investor sentiment divided between bullish and bearish global brokerages, all eyes will be on Sun Pharma’s execution in the quarters ahead.

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