ABN-Amro has downgraded Elan from a buy although it has suggested that those who already have the stock should hold onto it for now. The downgrade is based on the stockbroker's concerns about the company's sales prospects in the longer term.

Elan's second-half results were broadly in line with market expectations but the half-year outturn did highlight a slowdown in the company's rate of development, with revenues from product sales growing only marginally between the first and second quarter. ABN-Amro maintains its forecast for Elan to achieve earnings per share of $1.20 (€1.11) for the full year but is changing its recommendation to a hold.

The broker concedes that Elan's valuation continues to look attractive and a favourable resolution of its discussions with the Securities and Exchange Commission will provide some near-term stability. But it warns that Elan is increasingly exposed to the completion of regulatory hurdles and the success of product launches in competitive markets.

Notwithstanding the fact that the company's pipeline remains strong with five product launches planned by the end of 2000, ABN-Amro now accepts that investors will focus on the prospects for the Ziconotide filing in the fourth quarter with limited prospects for outperformance before that time.

ABN-Amro is more upbeat on the prospects for Green Property. It suggests there is significant "hidden value" there with current rental levels on the Irish and British portfolios 25 per cent and 19 per cent below market rates respectively.