Gsk Share Discussion Threads

[tradermichael] 30/4/2018 11:46

Long term 1950p plus all the dividends ...... ;0)

[ny boy] 30/4/2018 10:49

Take the middle ground between the two then 1605p!

Ex divi again 10 May, reasons to be cheerful

5%+ annual yield!

[jrphoenixw2] 27/4/2018 17:09

@Tompion
Isn't it a hoot. I don't know if any of them are worth the time it takes to read their forecasts. Any broker with a financial interest in a company can usually be simply ignored. For example 'House Brokers', or brokers/banks who underwrite stock/debt issuance for the subject company. Look at how few *dare* to issue sell ratings to see how one sided the whole field is.

[jrphoenixw2] 27/4/2018 17:05

'BillionDollarBrain 16 Apr '18 - 16:01 - 17284 of 17410
Immupharma (IMM) Phase III Lupuzor results expected this week.
Possible $ multi-billion blockbuster could lead to a massive re-rating of the share price.'

IMM share price 16Apr18 = 147p, price now = 32p; -78%. 'A massive re-rating' indeed, ouch!

[tompion] 27/4/2018 15:35

Love the brokers - two today giving updates targets - Berenberg giving 1790p and Deutsche Bank giving 1420p!

[tradermichael] 27/4/2018 15:24

Yes, and just 2 weeks to the next xdiv ...... ;0)

[ny boy] 27/4/2018 12:36

Defensive qualities, attractive quarterly divis, a solid blue chip global player, strong management..whatR17;s not to like, investors quickly bought the 1400p level

[alphorn] 27/4/2018 10:15

Obviously not a Treasurer. IMO you always need a 'view' on forex. If you are a global group with diversified operations it is part of the forecasting process. If you are a private individual it is part of the evaluation process unless one only invests in domestics.

[romeike] 27/4/2018 09:56

Trying to predict fx movements is a mug's game but despite what the idiot Carney says I can't see BOE raising rates unless they are forced to - that should mean downward pressure on GBP vs USD from early May, hopefully removing the unwanted drag on GSK revenues.

[ny boy] 27/4/2018 09:41

As expected, investors looking forward not backwards, plenty going on at GSK to be excited about

[ny boy] 26/4/2018 21:17

I make the US close tonight 1444p, US markets recovering.

Expect 1440/1450p tomorrow

[tim 3] 26/4/2018 19:41

Yes if we can break the recent high we back in the uptrend.

Very positive the way it bounces back after what some saw as a less than glowing update.

[ny boy] 26/4/2018 16:39

Better close, investors know when a blue chip is oversold, this one stands out like a sore thumb!

[ny boy] 26/4/2018 11:54

Bear trap, mugged some weak holders, I am expecting new highs this quarter, GSK very attractive going forward imho

[romeike] 26/4/2018 11:24

The drop yesterday was pure profit taking. Expecting the wider trend of recovery to 1700+ to continue. EW making the right moves to hit EPS goals, setting aside the two "uncontrollables": Advair generic and fx. Very impressed with recent hires at GSK.

[rlivsey] 26/4/2018 11:12

Chart still looks pretty good for move up

[tradermichael] 26/4/2018 08:23

A recent Bloomberg Intelligence analysis found GSK has more novel drugs in development than any other pharma firm. But these are largely early stage efforts.

[garycook] 26/4/2018 03:04

GlaxoSmithKline̵7;s share price and 5% dividend yield make it my buy of the decade

Harvey Jones | Wednesday, 25th April, 2018 | More on: GSK


Pharmaceutical giant GlaxoSmithKline (LSE: GSK) has just published its first quarter results, and investors are underwhelmed. The stock is down 2.64% after a mixed set of numbers, made worse by the currency impact of a strengthening sterling. Does that deter me from hailing it my buy of the decade? Certainly not.
Drugs do work

Glaxo delivered sales of £7.2bn across Q1, a rise of 4% at constant exchange rates (CER), but a drop of 2% at actual exchange rates (AER), thanks to the pound getting back its bounce. Sales grew across all three of its businesses, Pharmaceuticals, Consumer Healthcare and Vaccines (the smallest of the three but growing fastest at 13% CER).

Adjusted operating margins rose 1.3 percentage points to a healthy 26.6% at CER, although down 0.2 points at AER. Total earnings per share (EPS) fell sharply, by as much as 33% at CER and 48% at AER, although the group said this reflects the revaluation of its Consumer Healthcare business following the agreement to acquire full ownership. Adjusted EPS grew 11% at CER, beating estimates, while down 2% at AER.

Free cash flow disappointed, plunging 50% to £324m, reflecting the £317m vaccine sales milestone payment to Novartis.
Cash flows

Glaxo declared a dividend of 19p for the quarter and remains on course to pay out 80p across 2018, for the fifth consecutive year. City analysts are expecting a slight uplift to 80.33p in 2019, but that will depend on the group boosting its free cash flow. Right now, it is prioritising R&D as it looks to extend its drugs pipeline. The current forecast yield of 5.6%, covered 1.3 times, hardly needs beefing up. There are higher yielding FTSE 100 stocks out there, though.

CEO Emma Walmsley said Glaxo continued to make good progress, with CER sales growth across all three businesses. She added: “We are strongly focused on commercial execution with encouraging starts for our most recent new product launches, Shingrix, Trelegy and Juluca.”
Good health

Continued cost discipline helped boost Glaxo’s adjusted operating margin at CER. Meanwhile acquiring full ownership of the Consumer Healthcare business should “improve future cash generation and support capital planning for the Group’s main priority to strengthen the Pharmaceuticals business and R&D pipeline,” Walmsley said.

One of the big issues relates to when generic competition to its blockbuster US treatment Advair emerges. Glaxo reported increased pricing and competitive pressures in the US inhaled respiratory market during Q1, predicting a 30% decline in sales, while a mid-year introduction of a substitutable generic competitor to Advair could knock adjusted EPS to around 3%.
Keep taking the tablets

Glaxo won’t be the only FTSE 100 company punished by sterling’s recovery and if interest rates rise and Brexit negotiations make progress, there could be more to pain on that front. However, I prefer to buy on bad news rather than good.

Walmsley appears to have a tight grip on the business and recent product launches sound positive. You don’t often get the opportunity to buy Glaxo at a forward valuation of just 13.5 times earnings. That is why I reckon that it remains a great buy-and-hold for the next decade and beyond.

[philanderer] 25/4/2018 18:09

'Glaxo (GSK) Misses on both Earnings and Revenue in Q1'

[fangorn2] 25/4/2018 17:50

GlaxoSmithKline 2018 Q1 - Results - Earnings Call Slides



For anyone interested.