Any GlaxoSmithKline PLC (LSE:GSK) recovery is unlikely to come through before 2022 and will be driven by new products, according to Swiss broker UBS.
For the shares to be rerated, the pharma needs to show some earnings growth rather than just be seen as a value stock, says the broker.
The company is looking to its Shingles vaccine Shingrix to maintain the recent sales improvement, but UBS highlights a potential older adults RSV vaccine and daprodustat, a kidney disease treatment.
Most of the interesting potential upside on offer is in 2022 in the broker’s view, but if there is positive news for daprodustat in the fourth quarter some of this might come through earlier.
UBS has a price target of 1,485p, down from 1,500p previously, and a 'neutral' recommendation.
Shares today were unchanged at 1,427.2p.