GSK full-year results: where next for the share price?
GlaxoSmithKline will unveil its full-year results on Wednesday, with investors eager to see if the drug maker will hit its targets after upgrading its full-year guidance in October.
GlaxoSmithKline (GSK) will unveil its full-year (FY) 2019 results on Wednesday, with investors hoping the drugmaker will hit its targets after upgrading its guidance in October.
GSK expects FY earnings per share (EPS) to be flat year-on-year (YoY), up from the 3% - 5% decline that the group previously forecast.
Over the last nine months of trading, the pharmaceutical company has recorded strong sales, with it reporting revenues of £4.5 billon in Q3, up 3% YoY.
Sales were driven primarily from vaccines, up 15% to £2.3 billion in Q3, with its consumer healthcare unit also reporting strong growth, with revenues rising 3% to £2.5 billion over the period.
Ready to start hedging? Open an account with IG today to get started.
Major brokerages all upgrade GSK shares in January
Analysts from major investment banks have all upgraded their price targets for GSK in January ahead of its FY results, with Société Générale the most optimistic at £23.
Credit Suisse upped its price target to £18.60, with JP Morgan, Liberum Capital and UBS at £19, £19.30 and £19.50 respectively.
Based on GSK trading at £18.05 as of 16:25 (GMT) on Monday, analysts believe the stock has a potential upside of anywhere between 3% - 27%.
Do you own GSK shares? You can hedge your downside risk with IG by trading CFDs.
GSK joins effort by big pharma to develop Coronavirus vaccine
On Monday, GSK announced that it will join forces with other major pharmaceutical companies around the world to develop vaccines for the new Chinese coronavirus.
The joint effort will see GSK make its established pandemic vaccine adjuvant platform technology available to enhance the development of an effective vaccine against the virus.
An adjuvant is added to some vaccines to enhance the immune response, thereby creating a stronger and longer lasting immunity against infections than the vaccine alone.
The use of an adjuvant is crucial in a pandemic situation since it can reduce the amount of antigen required per dose, allowing more vaccine doses to be produced and made available to more people.
‘Our adjuvant technology has previously been used successfully in the pandemic flu setting,’ GSK chief medical officer Tomas Breuer said.
‘It enables using only small quantities of the vaccine antigen which allows the production of more doses of the vaccine – a crucial advantage in a pandemic.’
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
