Citi maintains 'neutral' rating on GSK, lifts earnings forecasts as shares rise 0.31%, citing unproven Phase III pipeline and Jemperli litigation as long-term growth concerns
Citi adjusted its model after GSK's Accelerate Growth event and Q2 results. The investment bank noted GSK's £1.9 billion cost-savings drive will fund 20 Phase III trials in 2026, which Citi expects to boost earnings per share by 1% to 4% between 2027 and 2030. However, Citi flagged that external data on many upcoming trials remains thin, leading to shaky forecast foundations and a projected 2% compound annual earnings growth that is the lowest among European pharma companies. Additionally, the ongoing Jemperli litigation with AnaptysBio, with a post-trial hearing set for October 20 and a ruling expected by early 2027, also weighs on long-term growth prospects.
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