Citigroup lowers GSK price target

Feb 1 2008 by Graeme King, The Journal

IN THE regional portfolio, pharmaceutical firm GlaxoSmithKline confirmed that vaccine Synflorix has been accepted for review by the EU regulators.

Synflorix is a treatment for meningitis and pneumonia. Jean Stephenne, president of GlaxoSmithKline Biologicals, said: “We are pleased with this important step towards the introduction of this vaccine, which is designed to offer a broad protection against pneumococcal disease.”

However, investment house Citigroup lowered its price target for GlaxoSmithKline from 1470p to 1400p. The Broker citied generic competition as a concern and lowered its forecast figures for the company. Nevertheless, Citigroup kept its “Buy” rating on the shares. GlaxoSmithKline’s share price moved higher over the course of the trading day by 8p to close at 1182p.

Elsewhere in the market, bus and rail operator Go-Ahead Group – where we act as joint broker – continued its share buy back programme. The group confirmed that it has purchased a further 50,000 Ordinary shares for cancellation. Go-Ahead’s share price finished 16p higher at 2166p.

Furniture group ScS Upholstery was under pressure following a disappointing trading update from rival Land of Leather.

ScS Upholstery updated the market earlier this month and reported that trading has been very difficult. The sofa retailer noted that consumer spending remains under pressure and the situation is unlikely to improve before its year end update. Management confirmed that the expansion program has been put on hold and it is taking action to reduce costs. ScS Upholstery’s share price was marked lower by 5.82% to close at 44.5p.

In other news, Virgin Group announced that it will submit its bid for troubled mortgage bank Northern Rock by the deadline on Monday, February 4. Northern Rock’s share price moved lower by 2.25p to finish the trading day at 107p.

Anthony Peart Anthony.Peart@Wise-Speke.co.uk