Credit Suisse upgrades Ranbaxy Laboratories Ltd to "neutral" from "underperform".
The investment bank says the possible penalty related to the recall of generic Lipitor last year in the United states was likely to be "low." The stock has already factored in the impact.
It adds share prices have also factored in a cash loss on currency options which Ranbaxy may report during its fourth quarter earnings, scheduled to be released on February 26.
Credit Suisse lowers its EPS estimates for the company for calendar years 2013 and 2014 by 6 percent and 11 percent respectively and cuts its target price by 5 percent to 435 rupees.