In a report released today, Steve Scala from TD Cowen maintained a Hold rating on GlaxoSmithKline (GSK – Research Report), with a price target of $45.00.
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Steve Scala’s rating is based on several considerations regarding GlaxoSmithKline’s current position and future prospects. GSK’s management highlighted a robust portfolio of key assets with significant upside opportunities, although the projected growth rates remain modest. Updated sales and earnings per share estimates show a slight improvement, but the compounded annual growth rate projections remain relatively low for both metrics.
Additionally, while GSK’s vaccines business shows potential for future growth, particularly with the Arexvy launch and the RSV market, the company faces limited exposure in the U.S. pediatric vaccines market. The company is also addressing pricing negotiations and patent expirations for its respiratory products like Trelegy, with strategies to protect intellectual property. These factors, combined with the uncertainty in public sentiment and policy impacts, contribute to the Hold rating, indicating a balanced risk-reward profile for GSK’s stock.
Scala covers the Healthcare sector, focusing on stocks such as AstraZeneca, Novartis, and Pfizer. According to TipRanks, Scala has an average return of 6.7% and a 60.00% success rate on recommended stocks.
In another report released on February 5, CFRA also maintained a Hold rating on the stock with a $40.00 price target.