logo-loader

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

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

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.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. 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...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Buds & Duds: Cannabis stocks flat as a pancake but CROP shares jump on first...

Cannabis stocks cruised into Friday flat as a pancake across North American markets. Buds today were CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF), True Leaf Brands Inc (CSE:MJ) (OTCMKTS:TRLFF), while the duds were TerrAscend Corp (CSE:TER) (OTCMKTS:TRSSF),...

9 hours, 1 minute ago

2 min read