United Drug jumps 2.5% on ‘buy’ rating

UNITED DRUG’s share price jumped by 5c – or just over 2.5% – to €2.04 yesterday on the back of Merrion Stockbrokers upgrading the stock to a “buy” recommendation.

In a detailed note on the Dublin-headquartered drug wholesaler and diversified healthcare services group, Merrion said the United stock “represents compelling value” and is surrounded by a number of potential catalysts for further upgrades through its next financial year up to September, 2010.

“Drivers behind potential upgrades include a recovery in the packaging division, wholesale market share gains in the Republic and swine flu-related volume increases in a number of businesses,” Merrion said in its note.