Broker tips: GlaxoSmithKline, AstraZeneca, Housebuilders

18th Jul 2014 12:23

Panmure Gordon said it is "not expecting fireworks" from GlaxoSmithKline's (GSK) second-quarter results due out next Wednesday."In light of our recent downgrade to forecasts due to exchange rate headwinds, we are expecting another tough quarter. China has not washed through completely either and generic competition to Lovaza in the US also makes this quarter difficult," said Analyst Savvas Neophytou.Exane BNP Paribas sees at least a 50% chance that US pharmaceutical giant Pfizer will return with a sweetened offer for UK rival AstraZeneca (AZN) following its failed takeover earlier this year.The bank said it expects another approach in November, when restrictions under takeover panel rules expire, as AZN is unlikely to invite Pfizer to talk.Liberum has trimmed target prices across the UK housebulding sector but said it still sees upside for stocks despite concerns about a slowing down of the housing market. The broker said that fears about "perceived threats" to the industry have been overdone and risks are "more benign than the market seems to think".Taylor Wimpey and Bellway have been named as the top picks in the sector with 'buy' ratings. Bovis Homes, Gleeson and Redrow are also 'buys'.BC