Berenberg downgrades GSK to 'hold' ahead of product rollouts
By Iain Gilbert
Date: Tuesday 03 Jun 2025
(Sharecast News) - Analysts at Berenberg downgraded drugmaker GSK from 'buy' to 'hold' on Tuesday as it awaited upcoming product launches.
Berenberg said GSK has delivered 12% absolute share price performance year-to-date, the highest in the sector, but despite this, continues to trade roughly 30% below the value of its marketed drugs alone.
The German bank stated that a better-than-anticipated start to any of GSK's upcoming product rollouts could "reinvigorate investor interest" and begin to address 2028+ HIV patent expiry fears.
However, Berenberg expects investors to adopt "a show-me attitude" and noted that while GSK's valuation "remains unchallenging", it prefers Sanofi for pharma value investors.
"GSK trades on 8.7x 2026 adjusted earnings versus non-obesity European peers on 11.5x. On EV/NPV, GSK trades c15% below European non-obesity peers (0.70x versus 0.82x) and c30% below the value of marketed assets alone," said Berenberg, which reiterated its £16.00 target price.
Reporting by Iain Gilbert at Sharecast.com
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