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GSK gets chunky Citi target upgrade after Zantac ruling

Published 08/12/2022, 13:41
Updated 08/12/2022, 14:11
© Reuters.  GSK gets chunky Citi target upgrade after Zantac ruling

© Reuters. GSK gets chunky Citi target upgrade after Zantac ruling

Proactive Investors - GSK has had a target price increase to £17 from £15.50 from Citibank following the latest judicial ruling in the Zantac case in the US, but the pharma remains only a 'hold' even so.

Following the ruling, Citi now expects a £5bn settlement compared with the £15bn settlement previously discounted.

Legal precedent also suggests that ongoing state-based litigation is unlikely to result in a material settlement, added the broker.

Additionally, in the absence of a bellwether win, the exclusion of Zantac advertising further narrows the scope of any future settlement added the broker.

Nonetheless, even with the higher target price, Citi still only rates GSK as neutral, preferring instead its UK rival AstraZeneca (NASDAQ:AZN).

GSK shares today were down 1.5% at 1,470p while Astra was up 0.4% at 11,306p.

Read more on Proactive Investors UK

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