GSK PLC (LSE:GSK, NYSE:GSK) looks undervalued, but the problem is that there is nothing on the horizon to change that perception according to analysts at US bank Jefferies.
Downgrading its investment rating to 'hold', Jefferies said that the spate of good news - favourable Zantac settlement, robust performance of Specialty, and pipeline successes – has been swamped by concerns about vaccines Shingrix (Shingles) and Arexvy (RSV).
Jefferies added its view glass is now looking half-empty, with overhangs for Arexvy and Shingrix, more subdued 2025 growth, and nothing new coming, dominating the picture.
Next year 2025, for example, will see growth subdued by Arexvy and Shingrix plus US Medicare changes.
Fundamentally, the value looks good with a 1525p/$39.5 target says Jefferies but it has removed GSK from its Franchise Picks alongside the downgrade.