The group’s Q4 and annual results for 2009 were marginally better than the already high expectations. Their quality is in fact well above average in recurring terms. As a result the group can afford the luxury of rewarding its shareholders with a very high dividend of CHF 16 (6.6% yield) with no adverse impact on the financial strength of this group which remains a reference in the sector. The markdown of this share against the sector is not simply unjustified, it is unjustifiable. PLUS code confirmed.

Petroplus 2010 refinery market outlook has pleased Helvea, which, however, keeps its bearish longterm view on the gasoline market, cutting its price target for the Swiss-listed refiner to CHF20 from CHF24. Broker also says that Petrolplus needs to improve its balance sheet. Keeps neutral rating.

Zurich Financial Services Group (Zurich) reported today continued strong operating performance, sustained profitability in all its core business segments and targeted growth in profitable market segments, particularly in Global Life and Farmers. For the year 2009, the Group generated an increased business operating profit and net income¹ after tax of USD 5.6 billion and USD 3.2 billion, respectively. Reflecting its confidence in the sustainability of these results, the Zurich Board of Directors will propose to the shareholders a gross dividend of CHF 16.00. “2009 was an excellent year for Zurich. We generated a strong operating performance across all our core businesses and emerged from a challenging year with one of our strongest balance sheets ever,” remarked Zurich’s Chief Executive Officer Martin Senn. “It is that proven ability to generate consistent earnings and achieve growth in targeted market segments that underpins my confidence looking forward, as it enables Zurich to face both challenges and opportunities from a position of strength.”

Roche reported a decline in full-year net profit on expenses related to the takeover of California-based biotech firm Genentech last year, but said brisk sales of flu drug Tamiflu and cancer medicines drove revenue higher. Sales of prescription drugs are off to a strong start in 2010, the drug maker said, and will probably rise around 5% this year.Net profit attributable to shareholders fell 13% to 7.78 billion Swiss francs ($7.36 billion) from CHF8.97 billion, below the CHF8.22 billion expected by analysts. For the full year, sales rose 8% to CHF49.05 billion from CHF45.62 billion. In local currencies, sales increased at a faster 10% pace, underlining that the Swiss franc's strength last year pressured earnings.

Morgan Stanley raises its Roche price target to CHF227 from CHF200 and its Novartis target to CHF61 from CHF49.50. Morgan Stanley cites Roche as one of its favored stocks in the European pharma industry and keeps an overweight rating. The bank points to the company's strong pricing and innovation power and expected synergies from the full takeover of Genentech. With Novartis, Morgan Stanley likes the company's strong late-stage pipeline, potential of MS drug FTY720 and favorable valuation. Novartis is at equalweight.