Highlights

  • Jefferies issued a Buy rating on GSK shares with a target price of 2,100 GBX.
  • GSK reaffirmed 2026 guidance and a 2031 sales outlook of more than £40 billion.
  • Specialty Medicines and Vaccines supported revenue growth and cash generation in 2025.

GSK plc (LSE:GSK) shares moved higher on Wednesday, trading at GBX 2,019.03, up 3.78% on the day. The stock has gained 46.31% over the past year and 10.91% over the last month.

The stock caught eyes of Jefferies and issued Buy rating on this pharmaceutical group, assigning a target price of GBX 2,100.

The rating update came shortly after GSK confirmed its expectations for 2026 and reiterated its longer-term sales outlook.

Guidance Upgrade Supports Broker Outlook

Through a press release dated 4 February, GSK reaffirmed its 2026 guidance, expecting turnover growth of between 3% and 5% at constant exchange rates. Core operating profit growth and core earnings per share growth are both forecast in the range of 7% to 9%.

The company also reiterated its 2031 sales outlook of more than £40 billion. All guidance figures were issued on a constant exchange rate basis, providing a consistent comparison framework.

Specialty Medicines Drive 2025 Performance

For 2025, GSK reported total sales of £32.7 billion, representing growth of 4% at actual exchange rates and 7% at constant exchange rates. Specialty Medicines delivered £13.5 billion in sales, with oncology revenue rising to £2.0 billion and respiratory, immunology and inflammation products generating £3.8 billion.

Vaccines sales reached £9.2 billion, including £3.6 billion from Shingrix. General Medicines generated £10.0 billion in revenue, with Trelegy contributing £3.0 billion.

Core operating profit increased by 11%, while core earnings per share rose 12%. Cash generated from operations totalled £8.9 billion, with free cash flow of £4.0 billion.

Pipeline Progress and Regulatory Milestones

GSK reported five major FDA approvals during 2025, alongside seven new pivotal trial starts. The company expanded its development portfolio through acquisitions and collaborations across oncology, respiratory disease, and immunology.

Looking ahead to 2026, GSK expects additional regulatory decisions and pivotal trial readouts across hepatitis B, oncology, chronic cough, and HIV prevention.

Shareholder Returns Maintained

GSK declared a fourth-quarter dividend of 18p, taking the full-year 2025 dividend to 66p. The company expects a dividend of 70p for 2026. A £2 billion share buyback programme remains underway, with £1.4 billion executed to date.

GSK shares gained limelight following Jefferies’ Buy rating and target price update, supported by the company’s upgraded guidance and detailed performance disclosures. With reaffirmed financial expectations, ongoing pipeline development, and continued shareholder distributions, broker attention has returned to the stock as it enters the next reporting period.

Frequently Asked Questions (FAQ)

Q1: What rating did Jefferies assign to GSK?
Jefferies issued a Buy rating on GSK shares with a target price of 2,100 GBX.

Q2: Why did GSK shares rise today?
The share price increase followed Jefferies’ broker upgrade alongside GSK’s reaffirmed guidance and performance update.

Q3: What are GSK’s growth expectations for 2026?
GSK expects turnover growth of 3% to 5% and core operating profit and EPS growth of 7% to 9% at constant exchange rates.