Stock Price & Analysis

Based on the provided data and current market conditions, here's a concise analysis of GSK stock:

Technical Analysis The stock is currently trading at $33.78, showing a positive momentum with a +1.05% gain in the regular market session . The RSI at 50.14 indicates a neutral position, neither overbought nor oversold.

Recent Developments

• GSK recently received expanded EU approval for Jemperli in combination with chemotherapy for endometrial cancer treatment, demonstrating continued progress in its oncology portfolio.
• The company has shown strong performance in specialty medicines with 19% YoY growth.

Analyst Sentiment Recent analyst actions have been cautious:

• Jefferies downgraded GSK to Hold from Strong Buy (November 2024)
• Guggenheim also downgraded to Hold from Strong Buy (October 2024), citing limited upside in pipeline catalysts

Recommendation SELL. While GSK shows some positive developments in its drug pipeline, multiple analyst downgrades and limited near-term catalysts suggest caution. The current technical indicators and analyst sentiment point toward limited upside potential in the immediate term.

Based on the provided data and references, here's the price prediction for GSK stock in 2025:

GSK's stock price is expected to reach $35.90 by mid-2025, driven by strong performance in specialty medicines and strategic partnerships in vaccine development. The recent settlement of Zantac litigation ($2.2 billion) has removed a major overhang on the stock, while the company's focus on HIV treatments and oncology portfolio continues to show robust growth. However, vaccine sales weakness, particularly in Arexvy, could create some near-term headwinds as RSV vaccination demand moderates due to lifetime dosing regulations.

The S1 support level for GSK Stock is $32.12 ,The R1 resistant level for GSK Stock is $34.1.

As of the end of day on 2025-01-24, the price of GSK Stock was $34.17.

The target price for GSK Stock according to analyst rating is 36.17, with the highest price target at 45.00 and the lowest at 19.19. Analysts have a Hold rating on GSK Stock overall.

The market cap of GSK is $71.0B.

Based on the provided data and context, I'll analyze whether GSK is overvalued through multiple aspects:

Valuation Metrics GSK's current valuation metrics show:

• P/E: 26.51x (Q3 2024)
• EV/EBITDA: 6.68x
• P/S: 2.12x
• P/B: 4.45x
• Dividend Yield: 3.76%

Financial Performance

• Revenue growth has been steady, increasing from $9.3B in Q1 to $10.4B in Q3 2024
• However, net income declined significantly in Q3 2024 to -$75.4M from $1.48B in Q2 2024
• Gross margins remain healthy at 71%, though declining from 73.9% earlier in 2024
• ROE has decreased from 35.2% to 18.37% over three quarters

Recent Developments

• Positive news on Jemperli approval in EU for endometrial cancer treatment
• Settlement of Zantac litigation for $2.2B reduces uncertainty
• Strategic acquisition of IDRx for $1B shows continued investment in growth

Analyst Sentiment Recent analyst actions show mixed views:

• Morgan Stanley initiated coverage with Hold rating and $44 target (Jan 2024)
• Jefferies upgraded to Strong Buy with $48 target (Jan 2024)
• Guggenheim downgraded to Hold (Oct 2024)

Conclusion GSK is not overvalued at current levels considering its stable revenue growth, strategic initiatives, and reasonable valuation multiples compared to peers. The EV/EBITDA of 6.68x is particularly attractive, while the P/E ratio has increased but remains within reasonable range. The 3.76% dividend yield provides additional value support.

GSK plc is a global biopharma company. The Company’s segments include Commercial Operations and Research and Development. It develops cancer medicines for patients, including ovarian cancer, endometrial cancer, and multiple myeloma. Its product areas include vaccines, specialty medicines, and general medicine. It is also focused on addressing the unmet treatment needs of patients with respiratory and inflammatory conditions. Its vaccine portfolio includes over 20 vaccines that help to protect people from a range of diseases and infections, including meningitis, shingles and flu, among others. Its specialty medicines are also engaged in developing medicines for respiratory disease and HIV. Its general medicines include inhaled medicines for asthma and chronic obstructive pulmonary disease, antibiotics, and medicines for skin diseases. It is advancing oligonucleotide therapeutics in chronic hepatitis B and steatotic liver disease as well as other therapeutic areas beyond liver disease.

Based on the provided data and market context, here is the price prediction for GSK stock by 2030:

GSK stock is projected to reach approximately $52-55 by 2030, driven by strong growth in specialty medicines and strategic expansion in vaccines and HIV treatments. The company's recent successful settlements of Zantac litigation for $2.2 billion has significantly reduced legal risks. GSK's focus on innovative drug development through partnerships with companies like Wave Life Sciences and CureVac positions it well for long-term growth in RNA therapies and vaccines.

The current technical indicators show RSI at 50.14 and MACD at -0.34, suggesting a neutral to slightly bearish near-term momentum that could present accumulation opportunities for long-term investors targeting 2030.

GSK has a total of 70212 employees.