Analyst Sachin Jain of Bank of America Securities maintained a Sell rating on GlaxoSmithKline, retaining the price target of p1,434.00.
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Sachin Jain has given his Sell rating due to a combination of factors affecting GlaxoSmithKline’s future performance. Despite the company’s recent earnings surpassing expectations, Jain remains cautious about the long-term outlook. The primary concern is the anticipated decline in HIV sales, driven by the loss of exclusivity for key drugs like dolutegravir, which is expected to significantly impact earnings from 2028 onwards.
Additionally, while GSK has shown optimism about new product launches, Jain is skeptical about their ability to offset the expected revenue declines. The delay in the HIV Q4M launch and competitive pressures from other pharmaceutical companies further contribute to the uncertainty. Jain also highlights the potential challenges in maintaining the strength of vaccine sales outside the US, which adds to the cautious stance on GSK’s stock.
In another report released today, Morgan Stanley also maintained a Sell rating on the stock with a p1,345.00 price target.