Rathbones' Stick: Why we expect an uptick in pharma revenues

Previously warned on pharma dividends

Equity markets are expensive. We are not predicting an imminent market correction; indeed, equities may well maintain their momentum for longer than we find comfortable.

We have seen 'quality' re-rate over the last few years, with compounders such as Unilever and Reckitt Benckiser generating returns for shareholders. Is value rotation beginning of a long reversal trend or a false start? Remember, these businesses have not always been darlings of the market. We have benefitted from owning these businesses, but that does not stop us from fretting over price versus value. The question is where may we judge value, and what are the business risks concurrent with that value? AstraZeneca provides us with a good case in point. In the short term, the bus...