Broker views: Pharma and banking

17th May 2017, 15:45

Jefferies has double downgraded its investment rating on Hikma Pharmaceuticals [LON:HIK] and moved straight to underperform from buy, stating that the US Generics Advair delay is a significant setback.

The broker added: "We expect a cautious IMS on May 19. Although momentum in injectables remains robust, we believe the delay is likely to act as a serious drag to sentiment until the US business turns around; hence our double downgrade."

Jefferies lowered its price target to 1,450p per share from 2,162p.

Meanwhile, Credit Suisse upgraded its recommendation on Virgin Money [LON:VM.] to outperform (from neutral), believing concerns about the credit card business, causing the recent underperformance, are overdone.

Nevertheless, analysts left their target price unchanged at 345p per share.

At 3:45pm:

[LON:HIK] Hikma Pharmaceuticals PLC share price was -54p at 1712p

[LON:VM.] Virgin Money Holdings UK Plc share price was -0.9p at 305.1p