Morgan Stanley downgraded GlaxoSmithKline GSK from Equal-weight to Underweight.
Morgan Stanley said, "Modest growth outlook (12% EPS CAGR 2012-14e), unlikely margin expansion, uncertainty around pricing policy and full valuations (23.6x 2013e) drive our downgrade to UW. MS India strategist expects 20% upside for the markets from current levels, and hence we expect GLAX to Underperform. … EPSe cut 6%/ 7.8%for 2013/ 2014 driven by slower sales growth and lower margin. We have not incorporated the impact of NPPP, which could hurt near-term earnings (10-16%, not assuming other factors -volume gains, price increase in non-NLEM portfolio)."
GlaxoSmithKline closed at $44.27 on Wednesday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in