HSBC Overhauls Biopharma Ratings Amid Sector Rally
HSBC's biopharma analysts have made significant adjustments to their ratings and target prices across various pharmaceutical companies. Led by Rajesh Kumar, the team cited a 'lower sector additional risk premium' following a rally in the second quarter of 2026.
The analysts noted that pharma multiples are at a decade high, making further outperformance dependent on medium-term growth upgrades rather than defensive positioning.
HSBC upgraded Novartis to Hold from Reduce, raising its target price to 110 Swiss francs from 95. This move was driven by the expectation of a near-term consensus downgrade cycle after 'back-to-back trial failures for pelacarsen and del-desiran.'
The analysts also downgraded Amgen to Hold from Buy, with the target price cut to $425 from $445. They argued that the stock has re-rated on strong operational execution and positive estimate revisions and now trades close to its target price.
However, the team retained their Buy rating on AbbVie and raised its target price to $315 from $300. They highlighted pipeline readouts for Skyrizi and Rinvoq as potential drivers of peak sales guidance increases in early 2027.