GlaxoSmithKline: shares fall as Liberum cuts target

(CercleFinance.com) - Shares in British drugmaker GlaxoSmithKline are currently down 0.
5% at 1,654.2 pence, with Liberum cutting its target price for the share as the company prioritises R&D investment.

2020 is an important year for commercial delivery from the pipeline, with two critical approvals in the first half, which will require launch investment, the broker says.

"As a result, margins will be under pressure in 2020/21 before expanding in 2022 and beyond," Liberum adds.

The broker has therefore cut its target price from 1,930 pence to 1,840 pence - while maintaining a "hold" recommendation on the stock.

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