Guggenheim analysts upgraded GSK plc (GLAFX) to Buy from Neutral on Monday, citing “key revenue updates” and “increased confidence in margin benefits, pointing to upside potential” in the company’s shares.
Key factors behind the move include projected above-consensus Arexvy sales of £1,235M in 2024 with expected market expansion and positive dosing updates; Shingrix sales forecast at £1,541M for 2024; confidence in the growth of GSK's long-acting HIV treatments and the successful relaunch of cancer treatment Blenrep.
In addition, Guggenheim believes “GSK will maintain stable margins in out years on the back of strong product performance.”
“We are encouraged by GSK's strong commercial execution around the launches of Arexvy and the long-acting HIV portfolio,” the analysts wrote.
The broker has a price target of £20.31 on GSK, indicating a 22% upside potential to the last closing price.