UBS analysts shook up their scores of European drugmakers, together with making a double-downgrade of AstraZeneca and a double-upgrade of U.Okay. rival GSK.
UBS took its scores on AstraZeneca
AZN,
AZN,
to promote from purchase, whereas it upgraded GSK
GSK,
GSK,
to purchase from promote. It additionally upped Novartis
NOVN,
NVS,
and Sanofi
SAN,
SNY,
to purchase from impartial, and Novo Nordisk
NOVO.B,
NVS,
to impartial from promote.
Analysts led by Matthew Weston say sector valuations are usually not demanding excluding weight-loss drug maker Novo Nordisk, buying and selling at 13.8 occasions projected 2024 earnings ex the Danish drugmaker.
On GSK, it forecasts Shingrix gross sales considerably forward of consensus, buoyed by a current China deal. UBS is also extra optimistic on Novartis most cancers, power spontaneous urticaria and MS medication than consensus. It is frightened about AstraZeneca’s publicity to Medicare Part D reform, notably its oral oncology portfolio.
On Novo Nordisk, “while we can justify current levels based on growth and earnings momentum, we struggle to stretch the valuation further to justify a more positive stance,” the analysts stated.
AstraZeneca shares slumped 3% in London, whereas the opposite pharma shares noticed restricted strikes.
Source web site: www.marketwatch.com
