MADRID -- U.K. pharmaceutical giant AstraZeneca was downgraded to underweight from neutral on Monday at JP Morgan, which said the company has a strong track record of beating estimates, but this will get tougher in coming quarters as it has to digest generic competition of high-margin products. JP Morgan expects three years of flat earnings from 2009 to 2012, and even a best-case scenario for its heart pill, Brilinta, won't help maintain current earnings power, with a year-end price target of 2,960 pence. JP Morgan also said that clouds are lifting on European pharmaceuticals overall, and the investment bank sees "significant absolute upside for all European large caps. It sees more upside for Swiss groups Roche Holding and Novartis , both overweight, and just 10% to 12% upside for AstraZeneca and GlaxoSmithKline . Sanofi , also overweight, offers 25% potential upside, said JP Morgan.

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