GlaxoSmithKline PLC (NYSE: GSK) is a multinational healthcare company driven by science and technology. Its business segments are as follows: 1) Pharmaceuticals, 2) Vaccines, and 3) Consumer Healthcare. The company's research is focused on respiratory illnesses, HIV/infectious diseases, vaccines, immuno-inflammation, oncology, and uncommon diseases. GSK has 2.52 billion American Depository Shares (ADS) listed and outstanding, with each ADS representing two ordinary shares.
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
GSK Daily Technical Chart (Source: REFINITIV)
GSK stock price rose 14.48% in the past three months and is currently leaning towards the higher end of its 52-week range of USD 33.53 to USD 46.86. The stock is currently trading above its 50 and 200 DMA levels, and its RSI Index is at 59.13. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 42.78.
Considering the uptick in the stock price, current valuation, and technical indicators, we believe the decent business fundamentals are adequately reflected at current trading levels. Hence, we recommend a "Sell" rating on the stock at the current price of USD 45.28, down 0.90%, as of January 20, 2022, at 11:02 AM ET.
* The reference data in this report has been partly sourced from REFINITIV.
*All forecasted figures and industry information have been taken from REFINITIV.