India's Dr. Lal PathLabs could beat margin guidance, boost investments, UBS says

Dr. Lal PathLabs

22/03/2024 06:08

** Shares of diagnostic services provider Dr. Lal Pathlabs
 DLPA.NS  edge up 0.4%
    ** UBS analysts say co has potential to beat management's
EBITDA margin guidance of 26%-27%
    ** Believes it would reinvest any additional margins into
growth opportunities
    ** DLPA currently has 9 bln rupees in cash; UBS estimates co
to report 33% CAGR to 28 bln rupees by FY28
    ** "Believe Lal Pathlabs has potential to increase EBITDA
margin 250-300 basis points in same period if it maintains
current rate of investment" - UBS
    ** Also expects steady pricing environment to aid in steady
margins and revenue growth 
    ** UBS maintains "buy" rating and target price at 2,900
rupees
  ** Avg recommendation on stock is a "sell;" the median TP is
2,452 rupees as per LSEG data
    ** DLPA is up nearly 3% so far this week, set to snap four
straight weeks of losses

 (Reporting by Anisha Ajith in Bengaluru)
 ((anisha.ajith@thomsonreuters.com))