GSK Plc. is an avoid at the current levels as the stock has been in correction mode for quite some time. The company announced its results on 26th July and investor sentiments surely look dampened post the results as the stock continued its southward journey after the announcement of the results. The stock finished trading on the London Stock exchange at 1514.0p a share on Monday, 31st July. The stock has been nonstop falling post the announcement of its results. Therefore, traders or investors are advised to stay away from the stock at least for the time being. In terms of charting or technical analysis also, the stock has made rounding top pattern which further confirms the bearish pattern of the stock and we expect the bearish trend to continue for the short term and see no signs of reversal anytime soon. The momentum oscillators like RSI and MACD also indicates the same. The stock has also been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 1594.0p, 1644.0p and 1640p respectively. The weekly charts also indicates double top pattern which again is a confirmation of bearish trend. Thus, GSK Plc. is an avoid for sure for the time being.
Let’s throw light on the latest financial results of the company. The company reported a loss per share of 3.7p in Q2’17 because of charges resulting from increase in the valuation of consumer and HIV businesses and new portfolio choices. However, the company’s topline grew by 12%, driven by continued momentum and growth in Pharmaceuticals and Vaccines. Also, the pharma giant reiterated its outlook for sales and earnings performance to 2020. GSK expects sales to grow at CER at a low-to-mid single digits percentage CAGR and Adjusted EPS to grow at a mid-to-high single digits percentage CAGR for the period 2016-2020. These outlooks are based on 2015 exchange rates and anticipate that at least one version of generic Advair will be launched in the US before 2020. (Read more)
GlaxoSmithKline Plc. is a compelling buy at the current levels. The stock has been rallying for quite some time now and we anticipate this rally to continue. The stock finished trading on the London Stock exchange at 1654 p a share on Tuesday, 21st February. Currently, the stock has been trading above its 20 day moving average, 50 DMA and 100 DMA of 1569p, 1556p and 1571p respectively. The stock has been trading 6% below its 52 weeks high and 21% above its 52 weeks low. In terms of technical indicators also, the stock has been making higher highs and lower lows and have been trading on the upward trend line. We see Stock going towards 1720 p in a short term only and stock might have resistance at 1720 p. The immediate support for the stock is at 1575p and it’s pretty unlikely that the stock would go below 1575p. Therefore, any dip in GSK PLC is nothing but a lucrative opportunity to buy or built fresh long positions. The RSI indicator also states that the stock shall continue to rally for some time.
The company announced its financial year 2016 results a few days back on 8th February 2016. Let’s throw some light on the results of the company. The company’s 2016 sales were up by 6% CER and segment wise pharmaceuticals sales were up by 3%, vaccines were up by 14% and consumer healthcare sales was up by 9%. The company’s cash flow from operations also improved in the year 2016 to £6.5 billion compared to £2.5 billion in the year 2015. Also, new product sales also doubled to £ 4.5 billion and new pharmaceutical sales represented 24% of the year 2016 total sales. The company also declared a total dividend of 80p and is expected to pay similar dividend in the year 2017 as well. (Read more)
Glaxosmith kline Plc is a hold at the current price levels as we see an upside of up to 6% from the current levels. The company announced its half yearly 2016 results on 27th July 2016 and the impact of the results on stock was also neutral. However, the stock has been correcting since the last few sessions and has come down from 1714p to 1612p lately. We see this dip in the stock as an opportunity to buy the stock as considering the fundamentals and financial matrix of the company, Glaxosmith kline Plc is surely a value buy.
The CEO of the company, Sir Andrew Witty commented on the first half results: “This second quarter’s performance reflects further strong execution of the Group’s strategy and our ability to allocate capital effectively across our three businesses to improve returns. Momentum across the Group is being driven by growth in new product sales, continued cost control and delivery of restructuring and transaction benefits. We have also made good progress in research and development, and in the second half of 2016, expect to complete key regulatory filings for Shingrix, Closed Triple, Benlysta SC and sirukumab.” (Read more)
Hikma pharmaceuticals (HIK:LN) was the best performing stock at the end of last week, experiencing a rise of 4.19% on Friday. This means the stock is now valued at 2,165p. The stock, which debuted on the FTSE 100 only last year, rose on the back of its earnings announcement for the first half of 2016. The healthcare company reported that its revenue rose by 24% to $882 million, or 28% in constant currency terms. (Read more)
Shire PLC, the Dublin-based pharmaceutical company at the centre of the controversial merger with Astrazeneca which fell through earlier this year, has announced its 2016 quarterly results which beat analysts' estimates. Pharmaceuticals have grown more and more appealing as prospective equity investments for investors given the growth potential of healthcare products driven by profound global demographic shifts. Sales in the multibillion-dollar global healthcare sector grew by 9.5% in 2015, particularly in emerging markets. (Read more)
GSK PLC is a Hold at the current levels with an upside of upto 10% to 15% within 6 months to 12 months. The company’s latest fiscal 2015 results were in line with the management guidance, as the fiscal 2015 eps declined by 15% which is in accordance with the company’s guidance given on investor day in May 2015. However, on the announcement of the results the stock crashed by 8% in the next 4 trading sessions. Lately, the stock has formed the consolidation levels at 1340 pence and finally set for a breakout as it has successfully breached 1400 levels. Currently, the stock is trading above 20 days and 50 days moving average of 1400 p and 1370 p respectively. Based on earnings estimates for the company's fiscal year ending in December 2017, the stock has a price-to-earnings ratio of 15.43 which is slightly up compared to FTSE100 12 month forward P/E of 13.37. The stock has a trailing price to earnings of 8.43.The Stock finished trading on London stock exchange on 17th February at 1419 p a share.
Earnings: estimates versus actual: (Read more)
GlaxoSmithKline plc.is fairly priced at the current levels and we don’t see much upside in the stock from the current price levels. We expect the stock to be range bound between 1280p to 1400p in the coming quarters and fiscal year. The company has been trading in a range between 1227.50p to1645p over the past year. Based on earnings estimates for the company's fiscal year ending in December 2016, the stock has a price-to-earnings ratio of 16.6 which is slightly up compared to FTSE100 12 month forward P/E of 13.37. The stock has a trailing price to earnings of 6.81.The Stock finished trading on London stock exchange on 31st December 2015 at 1373 p a share.GlaxoSmithKline plc. (GSK) is a healthcare company that researches and develops pharmaceuticals, vaccines and consumer healthcare products and has a market cap of £66.8Bn. The Company operates in two segments namely, Pharmaceuticals and Vaccines, and Consumer Healthcare. The Pharmaceuticals segment develops and makes medicines to treat a range of acute and chronic diseases. The Consumer Healthcare business develops and markets products in four categories namely,wellness, oral health, nutrition and skin health. Its brands include Sensodyne, Panadol, Horlicks, Polident, Paradontax, Tum,ENO, NiQuitin/Nicorette, Abreva, Zovirax and Aquafresh.
Out of the two business segments, the company generates over 74% of the revenue from pharmaceuticals and vaccines. However, in the cumulative third quarter 2015 results, the pharmaceuticals turnover was down by 7% mainly because of the disposal of the oncology business to Novartis. The other business segments continued reporting strong growth reflecting the promising growth of the business. The company reported operating profit of £10,576 m in the nine months 2015 compared to £2906m a year ago. The cumulative Q3’15 results included non-core items which resulted in a net credit of £6204m , which in turn raised the operating profits to £10,576m in cumulative Q3’15. In the absence of non-recurring or non-core items, the adjusted operating profit in the cumulative Q3’15 was £4372 m compared to adjusted operating profit of £4824m, a year ago. The net credit of £6,204 m reflects the impact of Novartis transaction. This included the profit on disposal of the Oncology business to Novartis of £9,233 million, acquisition charges of £1,170 m and other restructuring costs of £1,860 m. However the company’s cash flow from operations declined to £1,068 m in the cumulative Q3’15 compared to £2,966 m a year ago. The cash flows declined mainly because of lower operating profit margins, negative currencies impact and increase in receivables from the accelerated seasonal sales of vaccines. Therefore, the company’s performance was slightly weak in the first nine months of 2015 compared to a year ago and the management expects the same in fiscal 2015 as well. However the major challenge faced by the company is the pricing pressures on Advair in the US and Europe. The company has been the leader in respiratory diseases over 40 years and Advair is one of its mature products. To strengthen the respiratory portfolio, the company has added a few new medicines such as Relvar, Anoro Ellipta and LABA dual bronchodilator, Incruse Ellipta (LAMA) and Arnuity Ellipta (ICS). (Read more)