Best Research Ideas

European Pharmaceuticals – Set to Capitalize on Taking its Medicine

— Peter Welford, European Pharmaceuticals Analyst

Jefferies is positive on EU large-cap Pharma as it enters a period of sustained earnings momentum, justifying a move above the long-term historic PE. U.S. pricing remains a headline risk but investors are becoming immune to soundbites, and Jefferies sees real change being rational. Jefferies assumes coverage with Roche the most preferred EU large-cap Pharma, followed by GSK, Novartis and Sanofi. Jefferies is cautious on AstraZeneca, with Novo Nordisk the least preferred stock. FULL REPORT