Strong Phase III data for its Shingrix shingles vaccine in patients over 70 years follow encouraging data from the 50 years and older study.
But, poor initial data from its Losmapimod phase III acute coronary syndrome (ACS), or heart attacks, testing has meant it will not proceed to the full study.
“Losmapimod ACS failure more than offsets strong Shingles vaccine data in patients aged over 70,” the broker said.
It sees the news as “slightly negative”, but keeps its ‘neutral’ rating and 1,370p target price on the stock.
Elsewhere, the broker has cooled on Burberry (LON:BRBY), citing the flat first half sales for its pessimism.
JP Morgan downgraded its target price to 1,500p from 1,560p but retained its ‘neutral’ rating.
Also on the chopping block was WM Morrisons, though it was the BoE Merrill Lynch wielding the axe. The broker moved to ‘neutral’ from ‘buy’ on the stock.
In the small cap space, Peel Hunt has put an 8.8p price target on Shanta Gold as it sees the optimised mine plan bolstering its margins.