Shares in GlaxoSmithKline (LON:GSK) have advanced in London in today’s session following upbeat comments at both Barclays and Deutsche Bank, with the latter lifting its earnings estimates for the blue-chip drugmaker. The comments come ahead of the group's second-quarter results on July 25.
As of 13:23 BST, GSK’s share price had added 1.96 percent to 1,546.80p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.45 percent higher at 20,699.18 points. The pharmco’s shares have lost just under five percent of their value over the past year, as compared with about a three-percent rise in the Footsie.
Barclays and Deutsche Bank upbeat on GSK
Deutsche Bank, which sees GSK as a ‘hold,’ boosted its price target on the shares from 1,420p to 1,525p today. Proactive Investors reports that the analysts also hiked their EPS forecasts by six-seven percent, and noted that an update from the pharmco’s new head of research and development Hal Baron would provide investors with insight into the future direction of the company as well as an updated list of key pipeline assets, particularly plans for the group’s oncology and immune-inflammation portfolios.
Barclays, which sees GSK as a ‘buy,’ meanwhile set a price target of 1,750p on the shares. Proactive Investors quoted the analysts as arguing that the company’s launch of its Shingrix shingles product was “playing out more favourably than expected,” and that margin improvement was expected, while a core EPS of over 120p was feasible.
Other analysts on blue-chip drugmaker
UBS reaffirmed GSK as a ‘buy’ yesterday, valuing the shares at 1,600p, while Goldman Sachs, which also sees the company as a ‘buy,’ set a price target on the shares of 1,900p last week. According to MarketBeat, the blue-chip drugmaker currently has a consensus ‘hold’ rating and an average price target of 1,566.43p.