GlaxoSmithKline: shares slip after UBS downgrade
(CercleFinance.com) - GlaxoSmithKline fell nearly 1% in morning trading on Thursday, after UBS downgraded the FTSE-100 component from "buy" to "neutral.
In a note to clients, the broker said it remains in "a holding pattern" until more information is available regarding the British drugmaker's separation from its consumer unit.
After GSK's 2018 announcement that it intends to part ways with its consumer health business as part of a joint venture with Pfizer, which is expected to be completed in late 2022, investors have tended to gravitate towards valuation methodology for the shares, UBS pointed out.
"We think this mindset will persist until things are clearer, particularly given few clinical catalysts in the first half of 2021," it added.
UBS has also cut its target price for the stock from 1,730 pence to 1,440 pence.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.