UCB “neural,” target price reduced

03/04/08 - J.P. Morgan Securities

LONDON, March 4 (newratings.com) - Analyst Annie J Cheng of JP Morgan maintains her "neutral" rating on UCB SA (UNC), while reducing her estimates for the company. The target price has been reduced from €34 to €28.

In a research note published this morning, the analyst mentions that the Xyzal conversion estimate has been reduced from 25% of Zyrtec prescriptions to 10%. Although the demand for allergy medication is expected to rise in the forthcoming allergy season, there is uncertainty surrounding the demand for Xyzal, in view of the aggressive push by J&J for OTC Zyrtec, the analyst says. The EPS estimate for 2009 has been reduced from €1.06 to €0.88.