GSK (LON: GSK) shares have risen sharply over the past year, gaining 41 percent and advancing more than 4 percent on Tuesday. But despite the strong run, Barclays has turned more cautious on the pharmaceutical group.
Barclays analyst James Gordon has downgraded GSK to Underweight from Equal Weight and set a 1,780p price target.
The shift comes as the bank hands responsibility for European large-cap pharmaceutical coverage to a new analyst.
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In the update, Barclays cited a limited flow of upcoming pipeline readouts, which it believes carry execution risk.
The firm also said the company’s recently appointed chief executive has “limited room” to adjust strategic direction in the near term, prompting a more defensive stance.
The move follows recent commentary from HSBC in December, when analyst Rajesh Kumar lifted the bank’s price target on GSK to 1,500p from 1,200p.
HSBC maintained its Reduce rating but argued that the wider pharmaceutical sector is well positioned to outperform in 2026, particularly if “AI panic kicks in.”
The bank highlighted faster-growing names as its top picks, though it noted that “fallen angels and value could work as well.”
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