Analyst Sachin Jain from Bank of America Securities maintained a Sell rating on GlaxoSmithKline and keeping the price target at p1,434.00.
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Sachin Jain’s rating is based on a combination of factors affecting GlaxoSmithKline’s future performance. Despite the appointment of a new CEO, Luke Miels, who is expected to positively influence the company’s focus on pharmaceuticals, Jain remains cautious. The anticipated sales growth and earnings per share (EPS) for the years 2027 to 2030 are projected to slow down, with a notable decline in key products such as dolutegravir expected between 2028 and 2030.
Additionally, while there are several promising pharmaceutical catalysts on the horizon, including the launch of new products and ongoing developments in oncology and respiratory treatments, Jain expresses concerns about whether these will be sufficient to offset the decline in existing franchises. The uncertainty surrounding the competitive landscape, particularly in the HIV segment, and the potential impact of rival launches further contribute to the Sell rating. Jain’s analysis suggests that the upside potential from the pipeline in the next 18 months remains unclear, leading to a conservative outlook on GlaxoSmithKline’s stock.
In another report released on September 29, J.P. Morgan also maintained a Sell rating on the stock with a £14.86 price target.