Jefferies has initiated coverage of two of Britain’s largest pharmaceutical companies, GSK and AstraZeneca, with Buy ratings, citing strong pipelines and potential for long-term growth across their core businesses.
Analyst Michael Leuchten set a 2,000 pence price target for GSK, saying the stock “offers significant upside skew” as it trades at a roughly 30% discount to its peers.
Jefferies believes new leadership at the company can deliver an efficiency programme that buys time for new products to emerge from the pipeline.
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The broker noted that “green shoots” are visible in GSK’s late-stage assets and that the business still has scope for selective dealmaking to strengthen its portfolio.
Jefferies also started AstraZeneca with a Buy rating and a 15,000 pence price target, arguing that the company’s $80 billion sales target for 2030 is “in sight” and carries “lower risk than perceived.”
The firm pointed to likely outperformance in AstraZeneca’s oncology franchises and confidence in its broader biopharma pipeline as drivers of sustained growth.
The upbeat view from Jefferies contrasts with more cautious stances seen earlier this year.
Earlier this month, Deutsche Bank downgraded AstraZeneca to Sell, warning of patent pressures and a weaker outlook for its breast cancer portfolio.
Similarly, Morgan Stanley trimmed its GSK price target to 1,290 pence in July, citing lower expectations for its multiple myeloma treatment Blenrep.
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