Torrent Pharmaceuticals Ltd. received a share price target upgrade from BofA Securities, on the likely synergies in operating margins that can help in earnings growth. BofA has raised the Torrent Pharma target price to Rs 3,500 from Rs 3,300 earlier. The new target implies a return potential of 2.7% over the previous close. The brokerage has retained the 'neutral' rating on the stock."The pending deal augments Torrent Pharma's already strong domestic franchise with JB's established brands in cardiology (hypertension, heart failure) and GI and provides new growth avenues like ophthalmology, IVF in domestic, CDMO," analysts at BofA said in a note.They noted Torrent Pharma's solid capital allocation track record with its previous acquisitions, but JB Pharma's financials indicate a much stronger franchise with 28% margins compared to previous acquisitions.This deal is expected to boost the focus on synergies, driven by Torrent Pharma's forecast of increased earnings per share in the first year after the merger. The company also anticipates further margin improvements in fiscal 2028 from cost synergies in procurement, operating expenses, and manufacturing. Based on the EPS guidance, JB's margins are projected to align with TRP's, suggesting 250-300 basis points of synergies by FY27-28.Besides, 19 out of the 31 analysts tracking Torrent Pharma have a 'buy' rating on the stock, eight recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price target of Rs 3,598 implies a potential upside of 5.6%.Torrent Pharma – JB Chemicals Acquisition: What Should JB Chemicals Shareholders Do?. Read more on Markets by NDTV Profit.