GlaxoSmithKline PLC (LSE:GSK) is on track to deliver a much better performance in 2022 as investors see evidence of the potential in both arms of the business, according to Berenberg.
Appreciation of the consumer healthcare business should improve as it moves towards demerger from the pharma side, while data from trials should show that the new pharma-led GSK can deliver on its targets.
After a meeting with the CFO, Berenberg believes ‘New GSK’ can hit targets of 5% plus revenue growth and 10% in operating profits over the next five years.
In addition, GSK has several potential blockbusters in its pipeline with data readouts from a phase III trial of a new RSV vaccine in the first half of 2022 to be followed by read-outs from hepatitis B and arthritis developments.
GSK’s two key COVID-19 vaccine partnerships meanwhile should release data, with nothing allowed for any success here in Berenberg’s price target of 1,630p. Buy is the broker’s view.