May 14, 2014 / 6:29 AM / 3 years ago

Dr Reddy's extends falls; Morgan Stanley, BofA downgrade

Reuters Market Eye - Shares in Dr. Reddy's Laboratories Ltd (REDY.NS) slip 2.3 percent to 2,551 rupees, adding to their 4.1 percent fall on Tuesday as the drugmaker continues to be hit by disappointment over its January-March earnings.

Bank of America-Merrill Lynch downgraded the stock to "underperform" from "buy," and cut its price target to 2,550 rupees from 3,180 rupees, citing a "moderation in core earnings and limited upside."

Morgan Stanley downgraded Dr. Reddy's to "equalweight" from "overweight" and lowered its price target to 2,719 rupees from 3,078 rupees, saying earnings growth could be hit by a "high base in the U.S., limited new launch visibility and rising R&D spending."

Reporting by Indulal PM

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