Gsk Share Discussion Threads

[spyder] 01/3/2021 17:18

Just in case you did not see this - ‘Citigroup cuts price target to 1317p from 1580p’

[spyder] 01/3/2021 16:51

Sorry - wrong thread for AML post!

[eurofox] 01/3/2021 16:08

VIR moving up +5%

[montyhedge] 01/3/2021 15:08

Ess
My target for Astra is 6250p and seeing GSK move in tandem I see possible 1125p, just on capitulation in the pharma sector, I like both shares, just my view.

[essentialinvestor] 01/3/2021 14:43

I don't see AZN below £66, barring something unforseen.

[montyhedge] 01/3/2021 14:41

Pharma sector needs capitulation before its goes better, to me Astra at 6200p and GSK
at 1125p, painful I know.

[essentialinvestor] 01/3/2021 14:02

Yes, significant de-rating in pharma sector earnings multiples over the
last 12 months - in general terms.

By pharma I'm referring to the largest listed companies, rather than biotech,
appreciate there is some overlapping.

[spyder] 01/3/2021 13:59

Edited - posted by mistake!

[montyhedge] 01/3/2021 13:44

May just go to 1125p pharmas so out of favour.

[tradermichael] 01/3/2021 12:05

More good news (from Friday):

GlaxoSmithKline PLC on Friday said the European regulator has adopted a positive opinion recommending dostarlimab, one of the final steps in the marketing authorisation procedure.

Dostarlimab is an anti-programmed-death-1 monoclonal antibody, which was recommended by the Committee for Medicinal Products for Human Use of the European Medicines Agency for use as monotherapy in women with mismatch repair deficient endometrial cancer, who have progressed on or following prior treatment with a platinum containing regimen.

The Brentford, England-headquartered pharmaceutical company said the application is based on data from the Garnet study.

Meanwhile, dostarlimab is also under review with the US Food & Drug Administration for the treatment of women with recurrent or advanced endometrial cancer. Dostarlimab is not currently approved for use anywhere in the world.

"This positive opinion brings us one step closer to providing dostarlimab as a new treatment option to women with endometrial cancer in Europe with the hope of improving outcomes. If approved by the European Commission, dostarlimab would be the first anti-PD-1 therapy approved for endometrial cancer in Europe," said Axel Hoos, senior vice president & head of Oncology Research & Development at GSK.

[lovewinshatelosses] 01/3/2021 10:16

Should already be gone IMO, Spud.

[mister md] 01/3/2021 09:10

When quality FTSE companies get hammered there's usually a fair chance of them recovering over time. I bought Shell (RDSB) on the extreme sell-off at around 900p late last year, now up approx 50% at 1400p.

GSK feels like a similarly over-sold situation at 1200p. DYOR, IMHO etc

[montyhedge] 01/3/2021 08:08

GSK bouncing around their low 1200p, split the best thing ever, another 80p next 12 months dividends to come.The sector out of favour, rather be in GSK, than Astra still further to fall there.

[spud] 28/2/2021 19:26

Below 1000p for any length of time and I get the feeling that not only will EW be long gone, but the Company as well. We shall see. spud

[essentialinvestor] 28/2/2021 16:25

The value of a pharma business is in the current free cashflow/
current medicines- plus the longer term prospects of the pipeline.

You will notice the AZN multi year share re-rating happened
long before the P&L began to improve. That's because the market became
convinced of the increasing value of their pipeline, in AZN's case
of their oncology products.

If GSK can reignite growth in core pharma, it will be the same here,
at least to a degree.

As with AZN, for GSK the oncology pipeline holds the key -
just to a lesser extent because of vaccines.

[netcurtains] 27/2/2021 15:51

Thanks EI: But there comes a point where things go right over my head.
I like to keep it ultra simple like NAV: GSK £20b, MRK $24b. Eg same assets but Merck twice the price.

[essentialinvestor] 27/2/2021 15:31

net, you might want to read the recent FY conference call Q&A where the
post split dividend is addressed in one of the answers.

[daneswooddynamo] 27/2/2021 14:43

Shingrix was powering gsk growth alone before Covid, been a big casualty due to older groups shielding. It is such a game changer for shingles that once Covid abates it will be flying, they are building a new dedicated facility in Belgium to cope with demand

[netcurtains] 27/2/2021 14:31

do we know what Merck's dividend is?
On paper it looks like Merck's dividend is about 1/2 of GSK.

Merck COMPARED to GSK

Mercks
Mkt cap $183.73b
P/E ratio 26.11
Div yield 3.58%
pre-tax profits $8.7b (2020) profit DECLINE of 23%

GSK
Mkt cap £59.91b
P/E ratio 10.44
Div yield 6.7%
pre-tax profits £7b (2020) - profit GROWTH about 12%

On paper just looking at very basic balance sheet GSK is
the bargain here.

[essentialinvestor] 27/2/2021 14:25

Many of the major pharma companies sell on multiples of approx 13.5-15.5x earnings.

That's based on FY 2021 sector estimates.

Merck sells on approx 13.5 x forward earnings, has significantly lower
net debt than GSK, eventhough it is materially more profitable.

With hindsight, the GSK price circa £18 looks like a gift and
arguably also considerably overvalued the business.


LLY and AZN command higher ratings as future earnings growth is estimated
well ahead of average - obviously that growth needs to be delivered on.

The picture changes for GSK if they can reignite growth in core pharma

Their vaccine outlook appears strong( post pandemic)
CH spin off should create value, the ViiV jv is highly successful.

A lot depends on whether the very big bet on oncology delivers and a couple
of recent pipeline failures look to be weighing on the share price

[watfordhornet] 27/2/2021 13:44

Which one. All of Hal's purchases have been reinvestment of dividends from executive savings plan

[careful] 27/2/2021 13:06

Good to see director buying in significant amounts recently.
Always a good sign.