Graham Parry, an analyst from Bank of America Securities, maintained the Sell rating on GlaxoSmithKline (GSK – Research Report). The associated price target remains the same with p1,510.00.
Graham Parry has given his Sell rating due to a combination of factors affecting GlaxoSmithKline’s financial outlook. Despite a 10% earnings per share (EPS) beat in the first quarter, driven by strong performances from Benlysta and Nucala, the company’s guidance for the full year suggests an EPS that is approximately 3% below consensus estimates. This is partly due to unfavorable foreign exchange impacts and unchanged revenue growth projections.
Additionally, while the company has a low price-to-earnings ratio compared to its peers, its expected EPS compound annual growth rate from 2026 to 2029 is the worst in the sector at -5%. This is attributed to the maturation and decline of key franchises, such as Shingrix and Dolutegravir, and potential competition from new products like Gilead’s Lenacapavir. Furthermore, concerns about the company’s late-stage pipeline and declining sales in certain areas, such as Shingrix in the US and China, contribute to the cautious outlook.
In another report released today, J.P. Morgan also maintained a Sell rating on the stock with a £15.00 price target.