GlaxoSmithKline "underweight"

11/22/05 - Prudential Financial

NEW YORK, November 22 (newratings.com) - Analyst Tim Anderson of Prudential Financial reiterates his "underweight" rating on GlaxoSmithKline plc (GSK). The target price is set to $52.

In a research note published yesterday, the analyst mentions that a decline in the sales of the company’s Advair/Serevent drugs due to a probable change in their usage from first line treatment to second line treatment is likely to be gradual. Although the current users of Advair are expected to continue with the drug, the drug’s uptake is expected to decline among new users, the analyst says. The change in usage of Advair/Serevent is unlikely to significantly affect GlaxoSmithKline’s EPS in 2006 and 2007, Prudential Financial adds.