GlaxoSmithKline: Morgan Stanley upgrades to 'equal weight'
(CercleFinance.com) - Morgan Stanley has upgraded its rating on the GlaxoSmithKline share to "equal-weight" from "underweight" on Friday, citing the shares' improved valuation dynamics.
"The execution and investment risks associated with rebuilding pharma innovation remain, but progress in vaccines and a broader valuation pivot are now more supportive," Morgan Stanley analysts said in a note to clients.
MS also highlighted "more visibility" on the consumer healthcare unit spin-off, capacity expansion on shingles vaccine Shingrix and Biktarvy litigation in 2021.
However, GSK trades at levels broadly in line with the average EU pharma coverage universe, Morgan Stanley said, justifying its "equal-weight" rating on the shares.
The investment bank has also cut its target price for the drugmaker's stock from 1,695 pence to 1,665 pence.
GSK shares are currently down 0.2% in London.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"The execution and investment risks associated with rebuilding pharma innovation remain, but progress in vaccines and a broader valuation pivot are now more supportive," Morgan Stanley analysts said in a note to clients.
MS also highlighted "more visibility" on the consumer healthcare unit spin-off, capacity expansion on shingles vaccine Shingrix and Biktarvy litigation in 2021.
However, GSK trades at levels broadly in line with the average EU pharma coverage universe, Morgan Stanley said, justifying its "equal-weight" rating on the shares.
The investment bank has also cut its target price for the drugmaker's stock from 1,695 pence to 1,665 pence.
GSK shares are currently down 0.2% in London.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.