J.P. Morgan split with its clients the firm’s best current stock picks in the U.S. pharmaceuticals sector.
“We persist to see an attractive fundamental set-up for the Major Pharma group with an upward partiality to EPS estimates and with the group still inexpensive in our view, trading at a signal discount to the broader market,” the firm’s pharmaceuticals research group affirmed in a report Tuesday. “With valuation still inexpensive relative to the retail in our view and healthy fundamentals, we continue to see opportunities in the group.”
The analyst band noted pharma stocks are currently trading at about 15.1 delays estimated 2018 earnings per share versus the 17.5 times for the S&P 500.
Here are three overweight-rated assemblies that made the J.P. Morgan’s recommended list and their price goals.