GSK’s Price Target Hiked 18% to 2,250 GBp After EPS Beat

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Citigroup maintained its Neutral rating on GSK and raised its price target from 1,900 GBp to 2,250 GBp following a significant stock rally. GSK’s full-year 2025 EPS beat consensus by 2% and 2026 guidance met expectations despite a 1–2% trim to 2026–27 forecasts due to foreign exchange headwinds.

1. Rating and Price Target Revision

Citigroup maintained its Neutral rating on GSK and raised its price target from 1,900 GBp to 2,250 GBp after a recent rally boosted investor sentiment.

2. 2025 Earnings Outperformance

GSK reported full-year 2025 EPS that exceeded consensus by 2%, underpinning confidence in the company’s operational performance and future guidance.

3. Forecast Adjustments

Management trimmed 2026 and 2027 EPS forecasts by 1–2% in response to foreign exchange pressures and revised vaccine assumptions, while overall guidance remained aligned with market expectations.

4. Strategic Initiatives and Leadership

New CEO Luke Miels is focusing on accelerating R&D and pursuing lower-risk business development deals such as the partnership with RAPT Therapeutics, targeting £40 billion in revenue.

Sources

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