GSK Receives Lifted Price Target from Citi Despite Neutral Rating Maintained

Citi has increased its price target for GSK PLC (LSE:GSK, NYSE:GSK) to £22.50 whilst maintaining a neutral rating on the pharmaceutical group following a notable rally in the shares driven by improved investor sentiment.

The broker noted that full-year 2025 earnings per share exceeded consensus forecasts by 2%, with constant exchange rate guidance for 2026 broadly aligned with market expectations. Citi has reduced its earnings forecasts for 2026 and 2027 by between 1% and 2%, principally due to foreign exchange headwinds and revised vaccine assumptions, though long-term earnings projections remain largely unaffected.

The shares have experienced a substantial recovery from depressed price to earnings multiples following the results announcement. Citi attributed this performance to sustained operational delivery and increasing investor confidence in the company’s strategic execution under new leadership.

The broker highlighted that market participants have responded favourably to chief executive Luke Miels’ emphasis on accelerating research and development activities whilst pursuing lower-risk business development opportunities. Recent corporate activity, including the transaction with RAPT Therapeutics, has been cited as evidence of management’s commitment to supporting a £40 billion revenue target for 2031 with stable margins throughout the dolutegravir loss of exclusivity period.

Citi acknowledged that further pipeline advancement will be necessary to fully achieve the company’s sales and margin objectives. The broker pointed to positive momentum in research and development, noting multiple phase III trial initiations and potential new pivotal studies indicated for 2026 and 2027.

The shares traded flat at 2,205 pence following the broker’s commentary.