GSK’s analyst estimates
Wall Street analysts estimate that GlaxoSmithKline’s (GSK) top line will rise 11.4% to ~7.3 billion British pounds for 2Q17. Its EPS (earnings per share) is expected come in at 0.26 pounds.
The rise in revenues is expected to be driven by the strong performance of pharmaceutical products, vaccines, and consumer products. GSK’s reported revenues will also show the positive impact of foreign exchange due to the weakening of the British pound against all major currencies.
GlaxoSmithKline’s stock price has fallen nearly 3.7% over the past 12 months but has risen ~9.7% on a year-to-date basis in 2017. The analysts’ estimates show that the stock has the potential to return ~13.4% over the next 12 months.
These recommendations show a 12-month target price of $47.89 per share, compared with its last closing price of $42.24 per share on July 24, 2017.
As of July 25, 2017, there are four analysts tracking GlaxoSmithKline on the NYSE, of which two recommend a “buy” and two recommend a “hold.” The consensus rating for GlaxoSmithKline stands at 2.00, which represents a moderate “buy” for long-term growth investors.
There are 30 analysts overall tracking GlaxoSmithKline’s stock, of which 15 recommend a “buy,” 13 recommend a “hold,” and two recommend a “sell.” It has been observed that the changes in analysts’ estimates and recommendations are based on the changing trends in the company’s stock price and performance.
To divest company-specific risks, investors can consider ETFs like the Vanguard FTSE Developed Markets ETF (VEA), which has 0.8% of its total assets in GlaxoSmithKline. VEA also has 1.6% in Novartis (NVS), 0.6% in AstraZeneca (AZN), and 0.4% in Teva Pharmaceuticals (TEVA).