UBS expects investors to pay little attention to GSK PLC’s (LSE:GSK, NYSE:GSK) second-quarter results, with focus shifting instead to a strategy update from new chief executive Luke Miels.
The bank reiterated its ‘neutra’l rating on GSK ahead of results and a capital markets day due on 28 July
UBS set a 12-month price target of 1,940 pence, close to the 1,957 pence at which the shares closed on 10 July. Its forecasts sit about 1% below consensus on second-quarter sales, operating profit and earnings. The bank said the central debate was whether Miels could set out a credible path to GSK’s target of more than £40 billion in risk-adjusted sales by 2031.
UBS does not expect that target to change, but flagged a shortfall of more than £4 billion between the company’s ambition and its own and consensus forecasts. The bank expects an update on how GSK is reprioritising its pipeline after its recent acquisition of Nuvalent. UBS also pointed to weakness in the specialty and respiratory businesses seen in the first quarter.