0R15 8884.0068 1.4156% 0R1E 9171.0 0.0% 0M69 None None% 0R2V 255.5 0.3929% 0QYR 1619.0 0.0% 0QYP 434.5 -0.344% 0RUK None None% 0RYA 1600.0 4.5752% 0RIH 195.2 1.3763% 0RIH 195.2 1.3763% 0R1O 225.5 9877.8761% 0R1O None None% 0QFP None None% 0M2Z 255.0 0.2457% 0VSO 33.3 -6.4738% 0R1I None None% 0QZI 596.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 236.3943 1.5483%
GlaxoSmithKline PLC (LON: GSK) is a FTSE 100 listed multinational Healthcare Company, which operates with three global businesses that manufacture and conduct research on products related to pharmaceutical, consumer healthcare and vaccines. The Group was founded in the year 1715, with an apothecary shop in London and today, it has a workforce of over 99,000 people (including around 12,000 workers in the R&D division) across 95 countries. Geographically, the Group reports financial from predominantly three locations – United States (US), United Kingdom and Rest of World, while the US contributes the largest amount of turnover.
Upcoming Events
Growth Prospects
(Source: Company Website)
Risk Assessment
Now we will analyse some key fundamental and shareholders statistics of GlaxoSmithKline PLC.
Recent News
Collaboration (On 22 June 2021): ViiV Healthcare (majority-owned by GlaxoSmithKline PLC) entered a global collaboration and license agreement with Halozyme for ENHANZE® drug delivery technology, used in the treatment and prevention of HIV.
Development and Commercialisation Collaboration (14 June 2021): For an anti-TIGIT monoclonal antibody, GSK signed a development and commercialisation collaboration with iTeos Therapeutics for EOS-448 (presently in phase 1 for advanced solid tumours).
FDA Approval (26 May 2021): In collaboration with Vir Biotechnology, GSK received Emergency Use Authorization (EUA) approval from US FDA (Food and Drug Administration) for sotrovimab (VIR-7831), which is used in the treatment of mild-to-moderate COVID-19 in paediatric and high-risk adult patients.
Phase 3 Clinical Study (27 May 2021): In partnership with Sanofi, GSK initiated the enrolment Phase 3 clinical efficacy study of the COVID-19 vaccine candidate.
Phase 2 Results (18 May 2021): For the interim Phase 2 clinical trial, GSK and Medicago unveiled positive interim Phase 2 results for an adjuvanted COVID-19 vaccine candidate.
Quarterly results for three months ended 31 March 2021 (as on 28 April 2021)
(Source: Company Website)
Financial Highlights (for the fiscal year ended 31 December 2020, as on 03 February 2021)
(Source: Company Website)
Financial Ratios (FY20)
Share Price Performance Analysis
(Analysis done by Kalkine Group)
On 1 July 2021, at 8:48 AM GMT, GlaxoSmithKline PLC’s shares were trading at GBX 1,431.00, up by 0.82% against the previous day closing price. The stock made a 52-week High and Low of GBX 1,669.80 and GBX 1,190.80, respectively.
GSK’s stock price sustained above the 20-day EMA (GBX 1,404.64) and 50-day SMA (GBX 1,370.95), reflecting a bullish momentum and acting as strong support levels. Adjacently, the MACD line trades below the centreline and forms a positive crossover with the signal line. On the technical chart, the next important support level is at GBX 1,173.42.
Valuation Methodology: Price/Earnings Approach (FY21) (Illustrative)
Business Outlook Scenario
GSK reported solid growth in new pharmaceutical products, and it is on track to create a separate Consumer Healthcare Company in 2022. As a result, GSK reconfirmed FY21 guidance and expected mid to high-single-digit percent decline in adjusted EPS on a constant exchange rate basis. However, pharma revenue is expected to grow flat to low-single digits in FY21, while consumer healthcare revenue is expected to grow low to mid-single digits. Further, the Group is anticipating a notable contribution from Shingrix in H2 FY21 to meet the underlying demand of the Covid-19 vaccine. Overall, the Company is maintaining good momentum on the strategic priorities, and the fundamentals of GSK's business remained strong.
(Source; Company Presentation)
Based on the decent trading momentum, robust forward sales position, strong cost control, sound financial position, promising sector prospects, with support from the valuation as done using the above method, we have given a “BUY” recommendation on GlaxoSmithKline PLC at the current market price of GBX 1,431.00 (1 July 2021, at 8:48 AM GMT) with lower double-digit upside potential based on 17.47x Price/NTM Earnings (approx.) on FY21E earnings per share (approx.).
*All forecasted figures and Industry Information have been taken from REFINITIV.
*Dividend Yield may vary as per the stock price movement.
*The reference data in this report has been partly sourced from REFINITIV.
*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached or if the price closes below the support level (indicative stop-loss price).
Disclaimer
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