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GlaxoSmithKline: shares shine after broker upgrade.

(CercleFinance.com) - Shares of GlaxoSmithKline rose on Monday, after UBS raised its rating on Britain's biggest drugmaker from "neutral" to "buy," maintaining a target price of 1,550 pence on the shares.

The broker believes that concerns of a continuing decline in earnings and the sustainability of its dividend are now "over-done."

"Things will likely get tougher for GSK's earnings before they get better with 2018 showing a decline and no growth 2019 on our estimates", UBS said.

UBS adds that HIV franchise remains a "headache," but that this is now priced in, while the dividend looks secure and offers a "handsome" 6% forecast yield.

GSK shares are currently up 2% at 1,323 pence in early afternoon trading on the London Stock Exchange.

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