UK MARKET TALK ROUNDUP: BROKERS COMMENTS

30th Jun 2010 07:12

Broker comments in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 0612 GMT [Dow Jones] JPMorgan Cazenove upgrades AstraZeneca (AZN.LN) to neutral from underweight following the US Crestor patent ruling in its favor. Raises its price target to 3360p from 2960p. Says while generic challengers are likely to appeal, the probability of reversing this ruling appears to be low. Says the focus should now shift to the potential upside from a share buyback program. Thinks the upcoming Brilinta panel may cause further volatility, but thinks the upside from a share buyback far outweighs the potential risk from a negative vote here or delay in approval. Shares closed on Tuesday at 2947p. ([email protected]) 0607 GMT [Dow Jones] UBS raises AstraZeneca (AZN.LN) price target to 4100p from 3800p after it successfully defends its U.S. Crestor patent. Says this victory significantly safeguards around 17% of earnings, at risk due to the Crestor trial. From here, expects earnings momentum to continue. Says with AstraZeneca due to generate about $35Bln of net cash by '15E, the announcement of a major buyback could lead to up to 20%-40% of consensus '15 EPS upgrades, just after the FDA's meeting on Brilinta on July 28. Keeps at buy. Shares closed Tuesday at 2947p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 30, 2010 02:12 ET (06:12 GMT)