GSK: Jefferies downgrades stock
(CercleFinance.com) - On Thursday Jefferies downgraded its rating on GSK shares from "buy" to "hold", slashing its corresponding target price from 2,100 pence to 1,475 pence (current price about 1,329 pence, down 1%).
In a study of the European pharmaceutical sector, the US broker says that it considers the pharmaceutical company to be the most exposed to the Zantac case, named after the heartburn drug that is the subject of many complaints in the US.
According to Jefferies, the case could cost the group between one and seven billion dollars, which means that the 20% drop in the company's value in August already includes the "worst case" scenario.
However, even after this correction, the broker expects that some uncertainty will continue to weigh on the stock in the next few months.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a study of the European pharmaceutical sector, the US broker says that it considers the pharmaceutical company to be the most exposed to the Zantac case, named after the heartburn drug that is the subject of many complaints in the US.
According to Jefferies, the case could cost the group between one and seven billion dollars, which means that the 20% drop in the company's value in August already includes the "worst case" scenario.
However, even after this correction, the broker expects that some uncertainty will continue to weigh on the stock in the next few months.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.