GSK (GSK)

Sector:

Pharma and Biotech

Index:

FTSE 100

1,419.60p
   
  • Change Today:
    -3.80p
  • 52 Week High: 2,263.00
  • 52 Week Low: 1,296.00
  • Currency: UK Pounds
  • Shares Issued: 4,094.68m
  • Volume: 32,406,227
  • Market Cap: £58,128m
  • RiskGrade: 129

ShoreCap stays at 'buy' for GSK, points to significant discount versus peers

By Alexander Bueso

Date: Tuesday 22 Nov 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at ShoreCap reiterated their 'buy' recommendation for shares of GSK despite news that its Blenrep treatment against multiple myeloma was set to be withdrawn from the US Market.
According to the analysts, the news had already largely been anticipated and they had already reduced their sales forecast for the treatment from approximately $500m to about $150m to reflect its failure in the Phase 3 DREAMM-3 clinical trial.

Safety concerns related to Blenrep's apparent ocular toxicity and the potential sight-threatening keratopathy seen in trials might tilt the risk-benefit tradeoff in earlier settings against it, due to the background of entrenched options available.

Indeed, they went on to add that: "DREAMM-3 failing to meet its primary endpoint and with this now resulting in a withdrawal will likely compound low sentiment for the drug and GSK's capabilities in oncology."

Even so, the shares were trading on an estimated 2023 financial year price-to-earnings multiple of around 10.1, resulting in a "significant" discount against rivals in its sector on 16.3.

Furthermore, ShoreCap's blended valuation methodology yielded a fair value estimate for the shares of 18,500p for a forwards P/E multiple of 13.3.

The remaining discount reflected the lingering questions around the company's long-term growth, while "encompassing our view of the value disconnect that currently exists between the share price and the near-term growth prospects of the business."



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

GSK Market Data

Currency UK Pounds
Share Price 1,419.60p
Change Today -3.80p
% Change -0.27 %
52 Week High 2,263.00
52 Week Low 1,296.00
Volume 32,406,227
Shares Issued 4,094.68m
Market Cap £58,128m
RiskGrade 129

GSK Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
83.49% above the market average83.49% above the market average83.49% above the market average83.49% above the market average83.49% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
51.48% below the market average51.48% below the market average51.48% below the market average51.48% below the market average51.48% below the market average
29.03% above the sector average29.03% above the sector average29.03% above the sector average29.03% above the sector average29.03% above the sector average
Income
66.27% above the market average66.27% above the market average66.27% above the market average66.27% above the market average66.27% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
78.47% below the market average78.47% below the market average78.47% below the market average78.47% below the market average78.47% below the market average
95% below the sector average95% below the sector average95% below the sector average95% below the sector average95% below the sector average

What The Brokers Say

Strong Buy 2
Buy 6
Neutral 15
Sell 1
Strong Sell 1
Total 25
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

GSK Dividends

  Latest Previous
  Q4 Q3
Ex-Div 23-Feb-23 17-Nov-22
Paid 13-Apr-23 12-Jan-23
Amount 13.75p 13.75p

Trades for 01-Feb-2023

Time Volume / Share Price
10:04 6,324,027 @ 1,438.20p
16:47 6,390,027 @ 1,438.20p
10:04 6,324,027 @ 1,438.20p
16:47 6,390,027 @ 1,438.20p
17:07 2,000 @ 1,443.11p

GSK Key Personnel

CEO Emma Walmsley
CFO Iain Mackay

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