As the pharmaceutical industry continues to aid the world’s population, GlaxoSmithKline (GSK, Financial) is set to make an upward push in sales. While the world is tackling outbreaks such as Ebola, AIDS and other diseases, the company is trying to keep pace with demand and supply. However, as the world goes through a health crisis, some persons of the public are wondering if the pharmaceutical organization can keep up to performing well in the face of adversity.
GlaxoSmithKline has been serving the public for years by selling consumer healthcare products and deals with prescriptions as well as vaccines. It is based in London, but it spreads its reach to other parts of the world. The market cap for the company is 72.096 billion pounds.
As the Ebola outbreak continues to be a major crisis in the world today, the pharmaceutical company must do its best to keep up with meeting the needs of those countries that are experiencing a health problem.
Last Wednesday, GlaxoSmithKline and Novartis stepped into a new place of authority in the drug industry when they were awarded deal approvals worth above $20 billion. The award came from the European Union and this gave the company more power to grow its drug business. In addition to the deal from the EU, Novartis made a decision last April to acquire GlaxoSmithKline Oncology unit for the princely sum of $16 billion.
Furthermore, Novartis is going ahead with the sale of one of its vaccines division to GlaxoSmithKline for the sum of $5.25 billion. Now both companies are closely working together to develop a stronger organization that is able to create powerful as well as more over the counter drugs for consumers. The combined companies will include big names such as Excedrin and Panadol in their plan to deliver the right kinds of drugs to the public. GlaxoSmithKline and Novartis combined revenue will be in the region of $11 billion.
On Tuesday, JC Morgan Chase and Company restated GlaxoSmithKline plc shares as “underweight” rating. Meanwhile, during trading on Tuesday, the company started out with 1499.50. There is a 1200.668 1-year low and 1706.00 GBX 1-year high on GSK. The 50-day moving average for the stock is GBX 1405 and it has a 200-day moving average of GBX 1428.
Dating back from January 16 to January 23, other analysts from various firms that also gave their expert view on GSK are Berenberg Bank, Sanford C. Bernstein, Credit Suise and Barclays. Since January 16, Barclays did a downgrading on the stocks and placed it as an “overweight” rating by setting a price target on its GBX at 1,700 (25.51). On January 21, Credit Suise placed the stock as an “underperform” rating with a GBX 1,330 (19.96) price target. January 22 saw Sanford C. Bernstein analysts stating that the stock should be at a “market perform” rating and they went ahead and gave it a price target GBX 1,506 (22.60). On January 23, Berenberg Bank analysts pushed up GSK’s plc price target after they placed a “hold” rating on the company’s shares from 1,540 GBX (23.11) to GBX 1,620 (24.31). Still, so far, five analysts have the stock down as a “sell” rating, eleven consider it to deserve a “hold” rating and another six has the stock rating as “buy.” However, the present average rating of GSK stock is “hold” and it carries a GBX 1,525.95 ($22.90) consensus price target along with it.
As GSK continues to rise to the challenges of meeting the demands of the health industry, investors and analysts are eyeing the company for weaknesses. Still, with certain diseases such as Ebola and others on the rise, consumers will be buying plenty of drugs from the company in the future and thus push up profits. As profits increase because of increases in medicinal demands that the public will place on GSK, stock investors can hope to cash in on the company’s good fortune by way of great dividend payouts.
