GSK: Jefferies downgrades, citing lack of catalysts

(CercleFinance.com) - On Tuesday Jefferies downgraded GSK shares from 'buy' to 'hold', with a target price reduced from 2,000 pence to 1,525 pence (cp: -2.
4% at 1,363 pence).

It aknowledges that it considers it 'frustrating' that the British laboratory's share price is moving without much direction, despite positive progress made on the Zantac dossier, its solid performance in specialty medicine and its recent clinical trial successes.

While earnings estimates to 2027 remain optimistic and the stock's fundamental value remains attractive, Jefferies also admits to seeing few catalysts that could revive the stock in the near term.

Amongst other things, the analyst says that he is concerned about the strength of the Arexvy and Shingrix vaccine franchises, and growth, which appears as though it will be less dynamic in 2025, which he believes could lead a continuation in the valuation gap from which the stock suffers.


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