Jefferies announced on Wednesday that it had upgraded its recommendation on GSK shares from 'hold' to 'buy', with a target price raised to 1900 pence from 1550 pence.

In a sector note, the research firm believes that the development of new injectable HIV treatments, the launch of vaccines and the marketing of new products should enable a soft landing for the business following the expiry of HIV patents, scheduled for 2028.

In view of this underestimated growth profile, the analyst evokes an 'attractive' risk/reward cocktail, given the prospect of an out-of-court settlement of the Zantac case and exaggerated concerns about the 2024 financial year.

Jefferies highlights a 'deeply discounted' stock, showing a 23% upside potential.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.