Deutsche Bank stays at 'hold' on GSK, says shares 'fully valued'
GSK
1,651.00p
16:40 23/04/24
Analysts at Deutsche Bank stood by their 'hold' recommendation and 1,650.0p target price for shares of GlaxoSmithKline following the drug giant's fourth quarter numbers.
FTSE 100
8,044.81
16:49 23/04/24
FTSE 350
4,424.29
16:59 23/04/24
FTSE All-Share
4,378.75
17:14 23/04/24
Pharmaceuticals & Biotechnology
21,866.08
16:59 23/04/24
In particular, they noted that the miss in earnings per share meant that company guidance for a 1.0-4.0% drop in EPS for 2020 would now come from a lower base, meaning that the analyst consensus needed to rebase its forecasts.
Together with a projected headwind from foreign exchange rates, they judged the consensus to be roughly 4.0% too high.
Furthermore, the miss on EPS came despite a "significant" tax benefit.
As for the new £700.0m cost savings programme put in place, they expected a significant proportion of it to be reinvested.
"We continue to believe the shares fully value GSK's restrained near-term growth prospects."