‘Uncertain times ahead’: GlaxoSmithKline stock falls 4% as UBS moves to Sell
‘Uncertain times ahead’: GlaxoSmithKline (GSK) stock falls 4% as UBS moves to Sell
GSK
-5.98%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
By Senad Karaahmetovic
Shares of GlaxoSmithKline (NYSE:GSK) are trading more than 4.5% lower in pre-market U.S. trading today after UBS analysts downgraded to Sell from Neutral as the pharma giant faces “uncertain times.”
The new price target on the London-listed GSK stock is £13.00 (£1 = $1.1728), down from the prior £18.20, as UBS believes GSK’s valuation is too high. Moreover, the analysts see an “unattractive earnings scenario” after 2026.
“We see two factors posing risks to the earnings base longer term — blockbuster vaccine Shingrix will exhaust its catch-up patient pool in the U.S. around ’27 and HIV product dolutegravir faces patent expiry at the same time,” the analysts wrote in a client note.
These two issues could erase about 20% of revenue for GSK. If the management decides to soften 2027 bottlenecks, this “could mean earnings dilution.”
“And if GSK takes a wait and see approach to the HIV conversion strategy and waiting for improved R&D productivity, that could imply meaningful earnings risk longer term,” the analysts added.
As of 14:25 GMT, London-listed GSK shares are down about 5%.
