GlaxoSmithKline Still Undervalued, say Analysts

FTSE 100 pharmaceutical giant has reached an inflection point, argue Morningstar analysts, moving beyond ashthma drug Advair to HIV, vaccines and consumer healthcare

Damien Conover 8 February, 2019 | 8:17AM

GlaxoSmithKline

GlaxoSmithKline reported fourth-quarter results slightly ahead of both Morningstar analyst and consensus expectations, but we don't expect any major changes to our fair value estimate of £17.90 per share, above the current price of around £15.20.

We continue to view the stock as undervalued with the firm reaching an important inflection point, moving beyond generic launch of respiratory drug Advair in 2019 to a solid position in HIV, vaccines, and consumer along with a significantly improving pipeline with an increased focus in oncology. This strengthening outlook post-Advair declines also reaffirms our wide moat rating, which means the company has a strong competitive advantage.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
GlaxoSmithKline PLC1,304.20 GBX-1.50

About Author

Damien Conover  is a guest author

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