Bank of America Securities analyst Sachin Jain has maintained their bearish stance on GSK stock, giving a Sell rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Sachin Jain has given his Sell rating due to a combination of factors impacting GlaxoSmithKline’s financial outlook. Despite a slight earnings beat in the second quarter, the company’s guidance for the full year remains at the upper end of its range but is negatively affected by foreign exchange headwinds. This results in an implied earnings per share growth that falls below consensus expectations.
Additionally, while certain divisions like Specialty and Vaccines have shown strong performance, the overall sales and earnings growth projections for the coming years are concerning. The expected compound annual growth rate for earnings per share from 2026 to 2029 is negative, driven by the maturation and decline of key franchises. Furthermore, uncertainties surrounding the approval and launch of new products, such as Blenrep, add to the cautious outlook, leading Jain to maintain a Sell rating.
According to TipRanks, Jain is a 2-star analyst with an average return of 0.6% and a 52.94% success rate. Jain covers the Healthcare sector, focusing on stocks such as Sanofi, AstraZeneca, and Novo Nordisk.
In another report released today, J.P. Morgan also maintained a Sell rating on the stock with a £13.97 price target.