Major brokerages have updated their ratings and target prices for pharmaceutical giants Dr. Reddy's Laboratories Ltd and Pfizer Ltd following the announcement of their Q4FY26 earnings. These revisions, published on May 14, 2026, offer investors fresh perspectives on the two pharma stocks amid mixed financial performances.
Dr. Reddy's Laboratories: Mixed Q4 Results Lead to Rating Adjustment
Dr. Reddy's Laboratories reported Q4FY26 results that fell short of expectations on both revenue and margin fronts. The company's performance was notably impacted by a "one-time shelf stock adjustment (SSA) in Lenalidomide, VAT-related provisions and impairment charges related to CAR-T and Eftilagimod alfa." In the last trading session, Dr. Reddy's stock declined 0.39% to close at Rs 1265.10.
- Nirmal Bang maintained a 'Hold' rating for Dr. Reddy's, setting a revised target price of Rs 1,298. The brokerage expressed confidence in the company's strategy focusing on branded generics and partnership-led growth.
- PL Capital upgraded Dr. Reddy's stock from 'Reduce' to 'Accumulate', with a target price of Rs 1,400. Analysts highlighted the company's strategic investments, stating, “DRRD has been investing cash flow from gRevlimid to build pipeline across peptides, biosimilars and GLP products; benefits of that should be visible from FY27.”
Pfizer Ltd: Strong Brand Performance Drives Positive Outlook
Pfizer Ltd also saw its Q4FY26 earnings scrutinized by analysts. The company's stock declined 2.59% to close at Rs 4606.40 in the last trading session.
- ICICI Direct maintained a 'Buy' rating for Pfizer, setting an ambitious target price of Rs 5,750. The firm attributed revenue growth to the robust performance of established power brands such as Eliquis, Magnex, and Meronem. ICICI Direct projected a revenue Compound Annual Growth Rate (CAGR) of approximately 10% between FY26-28E and anticipated the company would uphold its track record of a ~+30% dividend payout over the coming years.
- Nirmal Bang retained a 'Hold' rating on Pfizer, with a target price of Rs 5,182. While revenues slightly missed NBIE estimates, the brokerage noted that margins surpassed expectations due to an improved product mix and reduced employee expenses.
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