Morgan Stanley lowered shares of GlaxoSmithKline (NYSE: GSK) from an equal weight rating to an underweight rating in a research report released on Thursday morning.
“Modest growth outlook (12% EPS CAGR 2012-14e), unlikely margin expansion, uncertainty around pricing policy and full valuations (23.6x 2013e) drive our downgrade to UW. MS India strategist expects 20% upside for the markets from current levels, and hence we expect GLAX to Underperform. … EPSe cut 6%/ 7.8%for 2013/ 2014 driven by slower sales growth and lower margin. We have not incorporated the impact of NPPP, which could hurt near-term earnings (10-16%, not assuming other factors -volume gains, price increase in non-NLEM portfolio).,” the firm’s analyst wrote.
Several other analysts have also recently commented on the stock. Analysts at BNP Paribas reiterated an underperform rating on shares of GlaxoSmithKline in a research note to investors on Wednesday, February 27th. Separately, analysts at Jefferies Group raised their price target on shares of GlaxoSmithKline from $1,500.00 to $1,550.00 in a research note to investors on Friday, February 22nd. They now have a hold rating on the stock. Finally, analysts at Zacks reiterated a neutral rating on shares of GlaxoSmithKline in a research note to investors on Friday, February 8th. They now have a $48.00 price target on the stock.
Ten equities research analysts have rated the stock with a buy rating, one has issued an overweight rating, seventeen have given a hold rating, three have issued an underweight rating, and two have issued a sell rating to the stock. GlaxoSmithKline has an average rating of hold and an average target price of $46.33.
GlaxoSmithKline traded down 0.59% on Thursday, hitting $43.96. GlaxoSmithKline has a 52-week low of $41.68 and a 52-week high of $47.70. The stock’s 50-day moving average is currently $44.. The company has a market cap of $106.1 billion and a price-to-earnings ratio of 15.03.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, April 11th. Shareholders of record on Friday, February 22nd will be paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 0.62%. The ex-dividend date is Wednesday, February 20th.
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