The UK’s share index has gone gangbusters in recent months. It could have much further to run too, given the steady improvement in investor confidence and the enduring cheapness of British stocks. These -listed companies look especially cheap at current prices.
In fact, City analysts believe their shares will soar between 15% and 36% in value over the next 12 months. Here’s what investors need to know about them. GSK A weak development pipeline means ( ) has underperformed the broader industry of late.
But recent signs of recovery mean profits could be about to accelerate strongly. Just last week, the firm reported positive Phase III results for its Depemokimab asthma battler. This follows four impressive outcomes at the same testing stage during the first quarter.
GSK now has almost 90 products in its R&D pipeline. Given its impressive track record of getting new products off the ground, it now looks in great shape to get sales firing again. City brokers certainly think so.
It’s why they predict earnings growth will speed up from 3% this year to 10% and 11% in 2025 and 2026 respectively. Fifteen analysts currently have ratings on GSK shares. And the average 12-month price target among them stands at £20.
32 per share. That’s a premium of around 15% from current levels. Of course, success at the testing phase is never guaranteed.
And any failures could erode GSK’s share price. But on balance, I think investing in the drugs developer could be a shrewd move. JD Sports.
