Jefferies Downgrades GlaxoSmithKline (GSK) to Hold

Jefferies analyst Michael Leuchten downgraded GlaxoSmithKline (NYSE: GSK) from Buy to Hold with a price target of $55.90 (from $67.40).

The analyst comments: “At 10x '27 P/E, GSK trades at a discount to peers, which has stubbornly persisted due to perceptions of an earnings cliff. Under new management, the company has been chipping away at this through BD and HIV LCM, helping the stock re-rate in '26. However, we are now entering a period of more limited earnings momentum, alongside launch execution risk, fewer meaningful pipeline readouts and questions around ViiV. We therefore downgrade to Hold.

GSK has delivered much of what drove our Buy thesis: BD has improved portfolio duration, oncology has evolved into a credible long-term growth franchise, and we believe assets are in place to underpin its £40bn 2031 revenue ambition. Our longer-term conviction is unchanged, but the risk/reward and catalyst profile has shifted as GSK approaches HIV patent expiries. With earlier pipeline de-risking increasingly recognised and the next major proof-points further away, we no longer see enough near-term upside to justify a Buy and move to Hold.”

For an analyst ratings summary and ratings history on GlaxoSmithKline click here. For more ratings news on GlaxoSmithKline click here.

Shares of GlaxoSmithKline closed at $48.74 yesterday.

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