Share Prices & Company Research

Market News

24 Jun 2021 | 10:16

Deutsche upgrades GSK after strategy day

(Sharecast News) - Deutsche Bank upgraded GlaxoSmithKline to 'hold' and raised its target price on the drugmaker's shares after it set out strategic targets. GSK said on Wednesday it was targeting sales of more than £33bn once its consumer healthcare business had been spun out in a refocus on vaccines and speciality medicines.

Under pressure from activist investor Elliott, GSK plans to split into two companies, biopharma new GSK and a consumer healthcare business, which owns brands such as Aquafresh, Panadol and Nicorette.

Emmanuel Papadakis, Deutsche's analyst, said Chief Executive Emma Walmsley's guidance was "reasonably credible" that modestly surprised on the upside and avoided potential banana skins. Papadakis upped his target price on GSK shares by 3% to £13.50 and increased his rating from 'sell'.

"We think GSK will now have many hard yards to cover in order to deliver on the double-digit EBITA (earnings) guidance to 2026 and more importantly, confidence on pipeline potential and sustainability of the business beyond 2026," Papadakis wrote in a note to clients.

GSK shares fell 0.4% to £14.03 at 10:52 BST.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 17th May 2022
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.