Maintain constructive view on EU pharma
We remain constructive on EU Pharma given our view on continued innovation improvement, and top-line driven growth at undemanding premiums vs the market. In our EU pharma coverage, we continue to prefer Roche (CL-Buy), Novo Nordisk, Bayer and GSK. We believe Novo Nordisk and Roche are best positioned in the space, with superior innovation/ execution, which is not discounted in current market valuations. We roll forward our valuation base year to 2017 for several stocks, resulting in changes to those 12-month price targets.