UPDATE: Credit Suisse Upgrades GlaxoSmithKline to Neutral; Pricing Policy Impact Priced In

Credit Suisse raised its rating on GlaxoSmithKline

from Underperform to Neutral. Credit Suisse noted, "We upgrade rating of GSK to NEUTRAL from Underperform and increase our target price to Rs2,055 (from Rs1,870). Our positive stance is driven by the fact that the overhang of pricing policy is largely over, in our view, and the margins (ex-pricing policy impact) have bottomed out and should rebound. Under the new pricing policy, GSK drugs are now more affordable and should gain volume share. On the current portfolio under price control (25% of sales), the pricing policy allows players to take 10% price increase after one year and GSK should benefit." GlaxoSmithKline closed at $43.85 on Wednesday.