Citigroup ups view on GlaxoSmithKline back to buy

Analysts at Citi moved to a 'buy' recommendation on shares of GlaxoSmithKline for the first time in three years, telling clients the group´s drug pipeline was "credible and undervalued" and that many of the broker´s previous concerns were now being addressed.

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The pharma group´s oncology products were particularly attractive, Citi analyst Andrew Baum said in a research note sent to clients.

Furthermore, the company´s business development leadership was improving from a low historic base and the appointment of a new chief in 2017 meant there was a better chance that Glaxo might divest or spin-off its consumer unit.

There was also scope for increased cost reductions, Baum said.

Citi upgraded its recommendation on the stock from 'neutral' to buy with a target price of 1,550p.