Schroder income duo tip 50% upside from big pharma

Two of the largest pharma stocks in the UK market could have 30%-50% upside from here, according to Schroder income duo Nick Kirrage and Kevin Murphy.

The managers of the £1.3bn Schroder Income fund and the £336m Recovery fund said there is still room for growth in the share prices of AstraZeneca and GlaxoSmithKline, although they are already giants in the market. "In 2000, analysts forecast Glaxo's profits would double by 2007 - 70% thought it was a raging buy, and no-one said you should sell it. But there was a high price to be paid for that consensus - the stock was on 35 times earnings," said Murphy. The firm's barriers to entry only got higher over time, and it became more cash generative, he added. "It did double both its prof...