GSK Shares: Analysts Cautious Ahead of Earnings Release

GSK (LON: GSK) shares face growing caution from analysts ahead of the company’s second-quarter results on July 30, with Morgan Stanley and Berenberg both recently tempering expectations for the stock.

Morgan Stanley lowered its price target on GSK to 1,290p from 1,355p and maintained an Underweight rating on the stock, which is up around 7% this year, but down 8% in the last month.

The firm cited currency impacts and cut its forecast for Blenrep, GSK’s treatment for relapsed or refractory multiple myeloma. 

Analysts now expect peak sales of £500 million, down from £1.4 billion, citing a “low probability” of US approval.

This follows a downgrade from Berenberg to Hold from Buy in June, which flagged limited room for upside following strong share price performance. 

At the time, GSK was up around 12% year-to-date, outpacing other large-cap European pharma stocks. 

While Berenberg highlighted that successful product launches could help reinvigorate investor interest, it warned that many investors may take a “show-me attitude,” particularly given concerns about the company’s HIV patent expiries starting in 2028.

Market sentiment remains mixed. According to TradingView data, only 4 of 21 analysts currently rate GSK a Buy, while 13 have a Hold and 4 recommend Sell.

Investor focus will now turn to GSK’s upcoming earnings for further clarity on pipeline progress.