UPDATE: Citi Raises GlaxoSmithKline's PT
According to a research report published this morning, Citi has increased GlaxoSmithKline's (NYSE: GSK) PT to $50.43.
In the report, Citi said, "We reiterate our BUY rating following recent underperformance after a weak 1Q. Our 2015E-18E EPS are 5-12% above consensus. Our new $50.43 Target Price is a 15% premium to our sector target multiple to reflect GSK's premium 8.4% 2013-18E EPS CAGR (sector 5.5%) and 2013E DY of 5.4% (sector 5.1%). Our DCF derived intrinsic value is $58.47. We believe the market is under-appreciating (i) late-stage pipeline, with value-added drugs for melanoma and NSCLC (skin, lung cancer) and HIV; (ii) consensus 2017E tax rates of around 25% look 200-250 basis points too high; and (iii) potential multiple expansion associated with any spin-off of ViiV (GSK and PFE HIV joint venture)."
GlaxoKlineSmith closed Friday at $44.28.
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