UBS analysts shook up their rankings of European drugmakers, including making a double-downgrade of AstraZeneca and a double-upgrade of U.Okay. rival GSK.
UBS took its rankings on AstraZeneca
AZN,
AZN,
to promote from steal, while it upgraded GSK
GSK,
GSK,
to steal from promote. It additionally upped Novartis
NOVN,
NVS,
and Sanofi
SAN,
SNY,
to steal from neutral, and Novo Nordisk
NOVO.B,
NVS,
to neutral from promote.
Analysts led by Matthew Weston assert sector valuations are now no longer traumatic with the exception of for weight-loss drug maker Novo Nordisk, trading at 13.8 cases projected 2024 earnings ex the Danish drugmaker.
On GSK, it forecasts Shingrix sales vastly earlier than consensus, buoyed by a newest China deal. UBS additionally is extra particular on Novartis cancer, chronic spontaneous urticaria and MS medications than consensus. It is unnerved about AstraZeneca’s exposure to Medicare Section D reform, notably its oral oncology portfolio.
On Novo Nordisk, “while we are able to express recent ranges based totally on development and earnings momentum, we battle to stretch the valuation additional to express a extra particular stance,” the analysts acknowledged.
AstraZeneca shares slumped 3% in London, while the opposite pharma stocks seen restricted moves.
