GSK PLC (LSE:GSK, NYSE:GSK) has had a target price increase to £17.00 from £15.50 from Citibank following the latest judicial ruling in the Zantac case in the US, but the pharma remains only a 'hold' even so.
Following the ruling, Citi analysts now expect a £5bn settlement compared with the £15bn settlement previously discounted.
Legal precedent also suggests that ongoing state-based litigation is unlikely to result in a material settlement, they added.
Additionally, in the absence of a bellwether win, the exclusion of Zantac advertising further narrows the scope of any future settlement, the analysts said.
Nonetheless, even with the higher target price, the Citi analysts still only rate GSK as neutral, preferring instead its UK rival AstraZeneca.
GSK shares today were down 1.5% at 1,470p while AstraZeneca was up 0.4% at 11,306p.