GSK: share price drops with JPMorgan worrying about growth

(CercleFinance.com) - The GSK share is down slightly on Tuesday in a London stock market that is up significantly, with the stock penalised by JPMorgan analysts downgrading the stock, having said that they are worried about the British laboratory's growth prospects.


At around 2 pm CET the pharmaceutical group's shares were down 0.1%, while the FTSE 100 index was up by 1.3% at the same time.

This morning JPMorgan downgraded the stock to "underweight" from "neutral", having reduced their corresponding target price from 1600 pence to 1350 pence.

The broker said that it is concerned about the "limited" earnings growth potential for 2023/2024, and a lack of promising projects in the drug development pipeline.

Added to this, they say, is a news flow that is expected to remain fairly limp this year, coupled with risks associated with the Zantac dossier and the expiry of numerous patents by 2028.

While the outlook for 2021-2026 is difficult, JPMorgan believes that 2025-2030 could be the most challenging period in the industry for GSK.


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