GSK reinstated with a Buy at Goldman Sachs

Goldman Sachs analyst Keyur Parekh reinstated coverage of GSK with a Buy rating and 2,000 GBp price target. The firm believes GSK’s current valuation is undemanding and fails to reflect its growth outlook, both in the near-term and in the mid-long term. Goldman Sachs sees GSK moving to a higher-quality and more sustainable growth outlook, driven by the growth of its vaccines business and the non-HIV specialty business. Fundamentally, the firm believes that the value of GSK’s vaccines business, and the cash flows from ViiV more than support GSK’s current EV, implying a negative value for rest of its business which it sees as too harsh.