Source: Sharecast
JP Morgan said after GSK's full-year earnings per share came in 2% ahead of consensus and its in-line FY26 constant currency guide, it had opted to trim 26/27E EPS by 1-2%.
The broker noted that GSK has rallied strongly off a low-PE post-results, and said it thinks this was due to continued operational delivery, as well as new chief executive Luke Miels' focus on accelerating R&D, low-risk BD and underwriting GSK's £40bn 31E revenue target and flat margins through dolutegravir LOE 28-31E.
"While we think more pipeline is needed to achieve the sales and margin targets we see momentum in R&D (7 PIII starts 25E, GSK flagging potential new pivotal trial starts 26/27E for its B7-H3 & B7-H4 ADCs, GSK’981 (KITi) for GIST, Cabenuva Q4M, LA TSLP and regimen selection for Q6M HIV to be announced at a June investor event)" said JPM.
"We see the stock as likely to hold these perception-shift gains but prefer not to chase hence raise our TP to £22.50 and maintain 'neutral'."
Reporting by Iain Gilbert at Sharecast.com