GlaxoSmithKline: shares shine after broker upgrade.
(CercleFinance.com) - Shares of GlaxoSmithKline rose on Monday, after UBS raised its rating on Britain's biggest drugmaker from "neutral" to "buy," maintaining a target price of 1,550 pence on the shares.
The broker believes that concerns of a continuing decline in earnings and the sustainability of its dividend are now "over-done."
"Things will likely get tougher for GSK's earnings before they get better with 2018 showing a decline and no growth 2019 on our estimates", UBS said.
UBS adds that HIV franchise remains a "headache," but that this is now priced in, while the dividend looks secure and offers a "handsome" 6% forecast yield.
GSK shares are currently up 2% at 1,323 pence in early afternoon trading on the London Stock Exchange.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker believes that concerns of a continuing decline in earnings and the sustainability of its dividend are now "over-done."
"Things will likely get tougher for GSK's earnings before they get better with 2018 showing a decline and no growth 2019 on our estimates", UBS said.
UBS adds that HIV franchise remains a "headache," but that this is now priced in, while the dividend looks secure and offers a "handsome" 6% forecast yield.
GSK shares are currently up 2% at 1,323 pence in early afternoon trading on the London Stock Exchange.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.