UCB: stock up following analyst upgrade

(CercleFinance.com) - Shares of Belgian pharmaceutical company UCB are up over 1.
5% on Tuesday, following an upgrade from US broker Jefferies, which has adopted a "hold" rating on the stock.

In a note to clients, the analyst says he believes that the consensus on anti-inflammatory drug Cimzia has become excessively pessimistic now that the biosimilar threat has been well-flagged.

Still, Jefferies thinks limited near-term growth potential dictates a "hold" rating.

"Growth and margins are likely to remain muted until the pipeline matures beyond 2021, with the shares fully valued based on PE and our hiked 73 euros price target," it says.

Shares in UBS are currently the top risers on Brussels' BEL 20 index, up 1.7% at 79.7 euros.



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