One to Watch: Health and safety

GLAXOSMITHKLINE is a global pharmaceuticals and healthcare group with a broad range of products. The company operates in 114 countries and its products are sold in more than 150.

It has two main divisions: pharmaceuticals and consumer healthcare. The pharmaceutical sector in general, and Glaxo in particular, have performed rather poorly in recent weeks, disappointed – if that is the right word – that the swine flu pandemic that was so confidently predicted failed to materialise. The market has taken to heart such news as the reduction of 30 per cent in flu vaccines requested by the German government and similar moves are anticipated from both France and the UK.

The major drug companies have also been unsettled by US president Barack Obama's prolonged jousting at the healthcare industry. There are concerns that one of the reforms might include the shortening of patent protection on biological drugs from 12 to seven years, while increasing the levy on the manufacturers.

These concerns look exaggerated but are overshadowing the strength and breadth of Glaxo's product portfolio. In addition to its existing products, Glaxo has an important product pipeline, including Votrient, a treatment for renal cancer, and Arzerra for advanced stage blood cancer.

Investors also appear to be underestimating Glaxo's importance in emerging regions, where there is significant growth potential. With investment markets likely to be dominated by political considerations for the next few months at least, investors may begin to retreat behind the defensive walls of major international companies, such as Glaxo, with a proven business model and product development potential.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

Robert Wiseman Dairies

500p +10p

Broker says ADD

EVOLUTION Securities has raised its target price on Robert Wiseman Dairies from 500p to 530p.

The broker said: "We think the investments Wiseman has made at Bridgwater and Amesbury (dairies] should enable the company to maintain decent top line and margin progression momentum over the next few years."

Bovis Homes

398p -10.7p

Broker says SELL

BOVIS'S valuation "still appears stretched on the basis of earnings-per-share recovery", according to KBC Peel Hunt.

KBC said: "Despite the business's superior financial condition, questions remain about the valuation and its ability to grow profits quickly enough to drive any upside in the share price."