GlaxoSmithKline plc’s “Underperform” Rating Reaffirmed at Zacks (GSK)
GlaxoSmithKline plc (NYSE:GSK)‘s stock had its “underperform” rating restated by Zacks in a research report issued to clients and investors on Friday. They currently have a $46.00 price objective on the stock. Zacks‘s price target would suggest a potential downside of 5.35% from the stock’s previous close.
Zacks’ analyst wrote, “Glaxo’s second quarter 2014 earnings were down 12% at CER to $0.64 per ADS and missed the Zacks Consensus Estimate of $0.71. Revenues declined 4% y/y at CER to $9.3 billion. Glaxo no longer expects to report revenue growth in 2014. Additionally, Glaxo expects 2014 core earnings to be broadly in line (at CER) with the year-ago period. We are concerned about the challenges faced by the company in the guise of increasing competition and pricing pressure. Additionally, we believe that any strict action enforced by the Chinese and other governments will significantly impact the top line. In view of these challenges along with currency headwinds, we believe that Glaxo is overvalued at current levels. Thus, we maintain an Underperform recommendation on the stock.”
GlaxoSmithKline plc (NYSE:GSK) traded down 2.96% during mid-day trading on Friday, hitting $48.60. 10,706,305 shares of the company’s stock traded hands. GlaxoSmithKline plc has a 52 week low of $48.23 and a 52 week high of $56.73. The stock has a 50-day moving average of $53.51 and a 200-day moving average of $54.00. The company has a market cap of $116.9 billion and a P/E ratio of 15.15.
GlaxoSmithKline plc (NYSE:GSK) last issued its quarterly earnings data on Wednesday, July 23rd. The company reported $0.65 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.71 by $0.06. On average, analysts predict that GlaxoSmithKline plc will post $3.38 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, October 2nd. Investors of record on Friday, August 8th will be paid a dividend of $0.6482 per share. This represents a $2.59 annualized dividend and a dividend yield of 5.33%. The ex-dividend date is Wednesday, August 6th.
A number of other firms have also recently commented on GSK. Analysts at Barclays reiterated an “equal weight” rating on shares of GlaxoSmithKline plc in a research note on Thursday. Separately, analysts at Panmure Gordon reiterated a “hold” rating on shares of GlaxoSmithKline plc in a research note on Friday, July 18th. Finally, analysts at Credit Suisse reiterated an “underperform” rating on shares of GlaxoSmithKline plc in a research note on Friday, July 18th. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and four have assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus target price of $51.50.
GlaxoSmithKline plc (NYSE:GSK) is global healthcare group, which is engaged in the creation and discovery, development, manufacture and marketing of pharmaceutical products, including vaccines, over-the-counter (OTC) medicines and health-related consumer products.
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