P&U Stocks Hit By Analysts' Downgrades

8 October 1997

Pharmacia & Upjohn shares took a tumble on markets on both sides of theAtlantic after analysts lowered their estimates for quarterly and yearly earnings. In New York, P&U was down 1.13 cents to 33.69 cents following NatWest Markets decision to lower its third-quarter earnings per share estimate for the company from $0.36 to $0.34.

NatWest added that P&U had not provided a meaningful reason as to why it should be expected to do better than it did in the like, year-earlier period, and also lowered its fourth quarter estimate to $0.35 from $0.38, bringing the full-year estimate down from $1.45 to $1.39.

P&U Suffers In Sweden In Sweden also, P&U fell 4.9% to 254 Swedish kroner ($0.34), due to rumors of a downgrade by investment bank Morgan Stanley. This was denied by the bank, which stressed that it had retained its long-time neutral recommendation. However, Paul Brooke, an analyst at MS, told Reuters that this is not a share he is recommending anyone buys, but noted that he expected the company to post 1997 EPS about 10 cents below the average forecast.

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