GSK: Credit Suisse cuts target price

(CercleFinance.com) - Credit Suisse maintains its 'underperform' rating on GlaxoSmithKline (GSK) share, having reduced its corresponding target price to 1300p (from 1400p), following a 4.
6% cut to its 2021 EPS estimate with updated currency assumptions.

The broker also says that it still expects a 2022 dividend of 50p per share from the UK healthcare group, below the consensus of 60p, and the 80p dividend expected for 2021.

"This reflects our concern that the pipeline value relative to peers is weak, and R&D productivity is poor," Credit Suisse says, while acknowledging GSK's good pricing power.


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