Citi’s troupe overseen by Andrew Baum slips from second place to third on this roster, while garnering a runner-up spot in Biotechnology, which last ran as a stand-alone sector in 2013 (before being combined with this category). From their base in London, the four analysts covering Europe’s pharmaceuticals equities report on 18 companies. Their outlook on the sector is positive, thanks to its “strong fundamentals despite political overhang in the U.S. over reimbursement,” Baum says. He and his crew continue to encourage clients to favor two industry leaders — and long-standing favorites: AstraZeneca and Roche Holding. Targeted at 5,400p, Anglo-Swiss AstraZeneca gets their nod owing to its “profoundly undervalued pipeline set to hit the market in 2017 and 2018, providing strong earnings leverage,” he explains. The stock traded at 4,230p in mid-January. The researchers favor Switzerland’s Roche Holding for the cash-flow upside from the company’s pipeline, which they believe “offsets erosion impact on in-market drugs from biosimilars,” advises Baum. At Sfr320, their price objective for Roche represents a 25 percent premium to the shares’ value in mid-January.