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GSK share maintains Buy rating on recent developments

EditorNatashya Angelica
Published 06/20/2024, 11:31 AM

On Thursday, Berenberg reaffirmed its Buy rating on GlaxoSmithKline (NYSE:GSK:LN) (NYSE: GSK), maintaining a price target of £18.20 for the pharmaceutical giant's shares. The endorsement comes as the market reacts to recent developments, including a judge's ruling on the Zantac case and updates to GSK's oncology pipeline.

The firm's position follows a period of adjustment for GSK's stock, which had experienced movement in the wake of the legal decision in Delaware concerning Zantac, a medication previously sold by GSK. Moreover, the company has been updating investors on the progress of its oncology treatments.

The focus is now shifting to GSK's newly launched vaccine, Arexvy. Significant attention is being directed toward the upcoming presentation of new data to the US vaccines committee, scheduled for June 26, 2024. The outcome of this presentation will be instrumental in establishing the final immunisation schedule for the vaccine.

Analysts anticipate that GSK could benefit from a broader immunisation recommendation that includes younger, at-risk populations. Such an expansion would potentially increase the vaccine's market and bolster the company's revenue stream from this product.

Despite the potential for growth with Arexvy, GSK's stock continues to be weighed down by the ongoing Zantac litigation. Still, Berenberg suggests that the current share price already accounts for the associated risks of this legal issue, indicating that the market has integrated this factor into GSK's valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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