What changed
$GSK — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $1.9B | EPS $1.26 vs $1.16 🟢
💡 Consensus models flat earnings and litigation headwinds forever; we see a path to resolution of Zantac risks and pipeline delivery driving 8-10% EPS CAGR, justifying re-rating from 9x to 12x P/E.
📉 Reward/risk: 2.54:1
🏢 Business Quality: 7/10 - Leading franchises in vaccines and HIV, but challenged by patent cliffs and unresolved litigation.
📊 Valuation: cheap vs. large-cap pharma peers (9x forward P/E vs. 13x sector), fair on normalized FCF yield (8% vs.
🔮 Catalyst: Q4 2024 earnings beat and pipeline updates, sustained quarterly execution
💰 Entry: $50.67, stop $47, target $60
⚖️ Buy GSK as cheap valuation and pipeline catalysts are underappreciated by consensus, delivering 2.5:1 upside potential in 3 months.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/GSK0621