Sarita Kapila, an analyst from Morgan Stanley, maintained the Sell rating on GlaxoSmithKline. The associated price target remains the same with p1,345.00.
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Sarita Kapila’s rating is based on a combination of factors despite GlaxoSmithKline’s recent financial performance exceeding expectations. The company reported a 4% increase in sales and a 12% rise in core operating profit, driven by stronger vaccine sales and higher royalty income. Additionally, the earnings per share surpassed forecasts by 17%.
Despite these positive results, Kapila’s Sell rating may be influenced by the broader market outlook and potential headwinds, such as foreign exchange impacts, which are expected to negatively affect sales and operating profit by 3% and 5% respectively. Furthermore, while the company has raised its guidance for the fiscal year 2025, the upgrades are relatively modest, suggesting limited upside potential in the near term. These factors combined may lead to a cautious stance on the stock’s future performance.
In another report released today, Bank of America Securities also maintained a Sell rating on the stock with a p1,434.00 price target.