Analysts at Liberum Capita have today noted GlaxoSmithKline PLC (LON:GSK) shares as 'downgrades’ with a recommendation of ‘hold’ and a target price of 1700p.
Increase shows potential for new year high on GSK stock price
The new target price indicates a rise of 7% on the market value which currently stands at 1,584.80 GBX −15.20 (0.95%) BST 14.08. The new target price is also a 4.2% rise on 1631.13, which is GSK’s highest stock price in the last 12 months.
Increase comes following European Commission approval of Nucala
The new rating and target price arrive on the heels of the European Commission approving GSK’s Nucala, a new Asthma treatment for children which specifically targets IL5 in children aged 6-17.
First Targeted Treatment for young children
With Asthma being one of the most common ailments amongst EU children, Nucala is the first treatment that is specifically targeted to this patient sector. Hal Barron, GSK’s Chief Scientific officer stated: “Asthma is the most common chronic disease in children. The availability of Nucala as the first targeted treatment available for young children with severe asthma will help provide asthma control for this patients and reassurance to their patients.” as quoted in uk.webfg.com.
As this drug is set to be rolled out in over 31 European countries, the approval could have a positive impact on GSK’s future revenue.