Liberum hikes target price for GSK but stays at hold
Analysts at Liberum hiked their target price for shares of GlaxoSmithKline after switching valuation methods given the company's medium-term plans to split its Consumer Health business from its Pharmaceuticals arm.
Using a sum-of-the-parts valuation, their target price for the shares rose from 1,510.0p to 1,890.0p.
In particular, the broker highlighted Glaxo's "impressive" sales of its vaccine for shingles, Shingrix, during the third quarter, but cautioned that sales were set to slow "dramatically" because of capacity constraints - until a new facility came on line in 2024.
On a more positive note, Liberum also called attention to the firm's "impressive" data for the firm's Zejula treatment for ovarian cancer, predicting sales of almost £3.0bn by 2024.
Nonetheless, with the shares already trading near their target price, the analysts kept their recommendation at 'hold'.