GSK Shares Edge Higher as Citi Initiates Coverage with Neutral Rating

GlaxoSmithKline share price (LON:GSK) rose 0.6% to 1,839.50p in morning trading after Citi initiated coverage of the pharmaceutical giant with a Neutral rating and a price target of 1,900p.

The cautious stance from the Wall Street bank comes despite the stock's robust 31% advance over the past twelve months, with analyst Graham Parry flagging mid-term growth challenges stemming from anticipated loss of exclusivity on key products.

The Citi price target implies modest upside of roughly 3.3% from current levels, suggesting the recent rally may be losing momentum. Parry's concerns centre on the patent cliff facing several of GSK's products, a familiar challenge in the pharmaceutical sector that can significantly erode revenues as generic competition enters the market.

The initiation adds to a growing chorus of cautious voices among analysts, with the consensus rating now sitting at Hold and an average price target of 1,829.17p.

The Neutral call from Citi follows a similar assessment from UBS Group, which on 23 January reaffirmed its own Neutral rating with a 1,940p target.

BNP Paribas Exane also maintained a Neutral stance earlier this year with a £13.50 target, citing GSK's low valuation multiple but expressing caution over pipeline visibility and exclusivity losses.

These more conservative outlooks contrast sharply with bullish assessments from Jefferies Financial Group and Shore Capital, both of which reiterated Buy ratings in January, with Jefferies setting a price objective of 2,100p.

The divergence in analyst opinion reflects the complex picture facing GSK as it navigates a transitional period. The company has demonstrated strong operational performance, with its Q3 2025 results showing robust growth across Specialty Medicines, Vaccines, and General Medicines, prompting management to upgrade full-year guidance. Yet concerns persist about the sustainability of this momentum once patent protections expire on certain high-revenue products.

The company has also sought to address pricing pressures in key markets. In December 2025, GSK entered into an agreement with the US government to reduce prescription medicine costs, including products in its respiratory portfolio. Whilst this move aims to expand access for millions of Americans and aligns with political priorities around healthcare affordability, it also raises questions about future pricing power in GSK's largest market.

With shares now trading near the upper end of analyst price targets, the stock's valuation appears to reflect much of the positive momentum from recent operational performance. The cautious initiation from Citi suggests markets may be taking a wait-and-see approach, balancing GSK's strong current performance against legitimate concerns about medium-term growth drivers. For investors, the coming quarters will be critical in determining whether management can deliver pipeline progress sufficient to sustain the stock's recent outperformance.