The number crunchers in the research department at Barclays Capital have initiated coverage of the EU pharma sector with a “resoundingly positive view”.
Its top pick is AstraZeneca PLC (LON:AZN), which it rates ‘overweight’; it also likes Shire Plc (LON:SHP).
“Our clear preference is for specialty-focus and growth in the context of a strong-catalyst driven thematic or deep value,” Barclays said in a brief note to clients.
GlaxoSmithKline (LON:GSK) is started with an ‘equal-weight’ call.
Barclays says valuations across the industry are “attractive”, though it expects primary care-exposed stocks such as Sanofi (EPA:SAN) and Novarits (ETR:NOT) to ‘underperform’.