Proactive Investors - Run By Investors For Investors

Brokers: UK pharma giants in good shape if Clinton wins says Citigroup

picture of Glaxo buliding
GlaxoSmithKline can weather a Clinton presidency

Hillary Clinton’s proposals for US healthcare reform will, if she wins, create almost limitless outcomes, according to Citigroup with potential black swan outcomes in the event of a Democratic clean sweep.

“From a legislative angle, we continue to prefer names with either limited part D exposure [US Medicare] or heavier contribution of non-pharma assets."

Both UK flagwavers GlaxoSmithKline (LON:GSK)  and Astra Zeneca (LON:AZN) are buys on that basis for the broker.

Gold miner Randgold Resources PLC (LON:RRS) is about 20% undervalued, a gap that should close as it releases more cash to pay out to shareholders according to JP Morgan.

Berenberg is sticking with its buy case for gas utility Centrica (LON:CNA) even though the investment case has been a frustrating one.

Centrica offers an attractive dividend yield underpinned by improving earnings and cash flow backed by cost-cutting, a recovery in commodity prices not yet reflected in the share price.

" Politics continues to dog the investment case but we continue to believe that the market is overly bearish" ,says the broker.

The target price is 240p.

A rising coal price points to rising dividends from Anglo Pacific Group PLC (LON:APF), suggests broker Peel Hunt.

Last week, the resource investor reported a 147% increase in royalty income in its third quarter.

Spot prices of coking coal, used in making steel, are up 229% in the year so far and 110% for thermal coal (used, among other things, in generating  electricity). The target price goes from 128p from 108p

Ergomed PLC's (LON:ERGO) co-development deal with Asarina Pharma AB for Sepranolone enhances its pipeline, says broker N+1 Singer, which repeats a 'buy' rating and lifts the target by 10p.

PhilW.jpg


Register here to be notified of future GSK Company articles

No investment advice: The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use