GlaxoSmithKline: shares down, UBS cuts price target

(CercleFinance.com) - Shares in GlaxoSmithKline were down slightly on Monday after UBS cut its price target for the pharmaceutical company.


The key question for the shares is whether full-year 2020 core EPS growth guidance of -1 to -4% at constant exchange rates (CER) needs to be cut, the analysts wrote in a note.

Saying that the top end of the range now looks "unachievable," UBS said it has lowered its forecast for CER EPS growth to -5.4% this year, from -4% previously.

The broker said it has cut its price target on the stock from 1,800 pence to 1,730 pence.

However, the shares already reflect a cut in guidance, UBS said, keeping its "buy" rating on the shares on a valuation basis.

Given the lack of near term catalysts, it continues, yet, to prefer Novartis and Roche.

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