UBS experts shocked their rankings of European drugmakers, consisting of making a double-downgrade of AstraZeneca and a double-upgrade of U.K. competing GSK.
UBS took its scores on AstraZeneca
AZN,
to offer from buy, while it updated GSK
GSK,
to purchase from sell. It likewise upped Novartis
NOVN,
and Sanofi
SAN,
to purchase from neutral, and Novo Nordisk
NOVO.B,
to neutral from sell.
Experts led by Matthew Weston state sector assessments are not requiring omitting weight-loss drug maker Novo Nordisk, trading at 13.8 times predicted 2024 revenues ex the Danish drugmaker.
On GSK, it anticipates Shingrix sales considerably ahead of agreement, buoyed by a current China offer. UBS likewise is more favorable on Novartis cancer, persistent spontaneous urticaria and MS drugs than agreement. It is fretted about AstraZeneca’s direct exposure to Medicare Part D reform, especially its oral oncology portfolio.
On Novo Nordisk, “while we can validate existing levels based upon development and profits momentum, we have a hard time to extend the evaluation even more to validate a more favorable position,” the experts stated.
AstraZeneca shares dropped 3% in London, while the other pharma stocks saw restricted relocations.