26th Aug 2015 09:22
LONDON (Alliance News) - FinnCap initiated coverage of Skyepharma with a Buy rating and a price target of 351.0 pence following the company's interim results Wednesday, saying it believes the specialty pharmaceutical company is a "growth stock with defensive characteristics".
Shares in Skyepharma were up 6.4% at 284.23 pence Wednesday morning.
Skyepharma reported a pretax profit of GBP10.5 million for the first half of 2015, swung from a pretax loss of GBP18.1 million a year before, as revenue rose to GBP40.8 million from GBP34.4 million and as exceptional finance costs did not recur.
"With a clear trajectory of sustained and growing revenues from approved drugs that are in the early phase of their launch, a positive and growing EBITDA, a strong balance sheet and a pipeline of development programmes offering out-licensing opportunities, we believe Skyepharma is a key holding in the sector," FinnCap said.
In the absence of any value-enhancing mergers and acquisitions, FinnCap said it sees 31% upside in one year for Skyepharma shares.
Elsewhere, N+1 Singer said it continues to believe the stock has a "highly attractive offering". N+1 Singer upgraded its full year pretax profit forecasts for 2015 and 2016 to reflect the strong performance from Skyepharma's asthma drug flutiform.
Skyepharma is a corporate client of N+1 Singer.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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