GlaxoSmithKline is one of the only stocks to rise in mid-afternoon trading thanks, in part, to a bullish analyst note.
UBS has upgraded the pharmaceuticals giant to buy from neutral after the company posted full-year results in line with expectations last week but shocked the market with a profit warning for 2008.
Shares in GlaxoSmithKline fell by around 8 per cent on Thursday, when the results were announced, and then a further 2 per cent on Friday.
Analysts at UBS say now is a good time to buy in anticipation of 2009 being a better year.
They say the company's pipeline of new drugs is getting little to no credit in the stock, adding that better market appreciation of higher-multiple vaccines and consumer healthcare businesses should support the overall valuation of the group.
UBS's analysts add that a number of products are potential blockbuster drugs, including Promacta, which aims to be the first oral platelet growth factor for a rare blood disorder and could launch by next year.
Shares in the company rose 9p to £10.79 in mid-afternoon trading.
