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Shire is our top pick in EU pharma, offering near- term earnings and pipeline momentum.
Credit Suisse said: We downgrade medium term earnings per share by 3%.
But the longer term earnings trends suggest this is a modest assumption.
On 13 times consensus 2016 PE, Sainsbury's share price already reflects downside risk to near term earnings.
We now expect greater appreciation of the growth opportunity, ultimately driving near term earnings surprises and further multiple expansion.
In the short term, earnings are far less important, and create noise.
Similar(51)
***PEG: 12-month forward estimated P/E divided by long term earnings-per-share forecast.
First, hesitation at believing long-term earnings growth forecasts.
Long-term earnings forecasts peaked, in August 2000, at 18.7%.
ICON uses a valuation model that tries to gauge long-term earnings growth, along with risk and near-term earnings prospects.
He forecasts a long-term earnings growth rate of 9percentt a year.
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