BUZZ-Dechra Pharma: "Diamond in the Ruff" - JPM starts with OW

** JP Morgan starts UK-based animal health co Dechra Pharmaceuticals with "overweight" and PT 3,000p

** Brokerage sees Animal Health as attractive subsector offering strong demographic demand, low development costs and superior sustainability to Human Pharma

** JPM says Dechra outperformance will be driven by delivery of double-digit EPS growth, multiple expansion as strong outlook is better appreciated and M&A driving positive EPS momentum

** "We see potential forecast upside from pipeline optionality and M&A," the broker says

** JPM believes CAP (Companion Animal Product) is the most attractive Animal Health subsector and sees Dechra as the most-exposed listed CAP player (c.66 pct of 2018 rev) vs U.S. Animal Health peers Zoetis and Elanco

** It adds Dechra historically outperformed CAP market, which it expects to continue

** Brokerage forecasts core EBIT growing at 10 pct CAGR 2020-23

** At the same time Jefferies ups PT to 2,805p vs 2,466p