Arexvy, GSK PLC (LSE:GSK, NYSE:GSK)’s recently launched respiratory syncytial virus (RSV) vaccine, has made a strong start but management remained cautious given the recent launch and broker Berenberg says this is understandable.
Berenberg has several questions on Arexvy and shingles vaccine Shingrix but, even so, says GSK is on a compelling valuation currently compared to its pharma peers.
On an earnings multiple, GSK trades at 9.3 times 2024 adjusted earnings versus global peers standing on 16.6 times.
On an enterprise/NPV ratio (including a £3 billion Zantac liability), GSK is at a 25% discount to global peers and 30% below the value of its marketed assets.
The broker’s price target of £16.50 is derived from an average of P/E-relative and equity NPV valuation methodologies.
'Buy' is the broker’s investment rating.