Ranbaxy Labs bounces back to new high

Ranbaxy Labs is doing very well. The stock has hit a new high today at Rs.657.65 and currently hovers around the same levels.

The stock was dumped on Friday due to a penalty of Rs.240 crore allegedly levied on the company by the state of Texas. But today, the same stock has hit a new high on reports that UBS, despite this development of penalty, maintained a BUY rating on the stock, with a target price of Rs.784/share. UBS has stated in the report that the company will benefit from a strong outlook for Sun Pharma and no word was mentioned about the penalty, which means, it does not think that it was a news to be perturbed about.