GSK: Jefferies downgrades, citing a lack of catalysts

(CercleFinance.com) - Jefferies announced on Tuesday that it had downgraded its recommendation on GSK shares from 'buy' to 'hold', with a price target reduced from 2,000 pence to 1,525 pence.


In a research note, the research firm acknowledges that it considers it 'frustrating' that the British laboratory's share price is moving without much direction, despite the favorable progress made on the Zantac dossier, its solid performance in specialty medicine and its recent clinical trial successes.

While its earnings forecasts to 2027 remain optimistic and the fundamental value of the stock remains attractive, Jefferies also admits to seeing few catalysts likely to revive the stock in the short term.

The analyst says he is concerned, among other things, about the strength of the Arexvy and Shingrix vaccine franchises, and about growth that looks less dynamic in 2025, which he believes could lead to the valuation gap from which the stock suffers persisting.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.