Broker snap: Positive comments from Credit Suisse on Shire and GSK

5th Jan 2012 13:47

In a research note on the UK healthcare sector published this morning analysts at Credit Suisse set out their views on the different names under their coverage.They thus indicate that they continue to prefer the superior growth at Shire and the combination of "stability and efficient balance sheet use at GlaxoSmithKline (GSK)."In the case of Shire they write that, "Shire remains our favoured name based on continued growth in the adult ADHD market and continued supply issues for competitor Sanofi in the enzyme replacement market. We continue to assume full generic Adderall XR competition in 2011 but acknowledge this may not appear until 2014+." As for GSK, they point out that it was 're-rated' in 2011 and now sits as the highest rated of the EU majors. In the opinion of Credit Suisse that may be appropriate given its position in the innovation/patent expiry cycle but leaves little room for pipeline or Advair disappointment in 2012. In consequence, Credit Suisse has today raised its target price on GSK from 1340p to 1430p "to reflect market moves." AB