Summary:
- GSK's Flovent HFA inhaler discontinuation sparks a Senate investigation.
- Analysts provide a mixed forecast with a modest upside potential for GSK.
- GuruFocus estimates suggest substantial growth potential above market price.
The recent cessation of the Flovent HFA inhaler by GSK (GSK, Financial) in the U.S. has drawn scrutiny from Senator Maggie Hassan. This investigation arises from concerns that the replacement with a pricier generic alternative is adversely impacting low-income patients, potentially leading to increased asthma-related hospitalizations and fatalities. The unfolding situation highlights critical issues in pharmaceutical access and pricing.
Wall Street Analysts Forecast
According to the projections of seven Wall Street analysts, GSK PLC (GSK, Financial) holds an average one-year price target of $39.26. This estimate includes a high of $45.00 and a low of $35.29, suggesting a modest potential upside of 1.49% from the current stock price of $38.68. For investors seeking more granular forecast details, these can be accessed on the GSK PLC (GSK) Forecast page.
Evaluating broader market sentiment, the consensus recommendation from nine brokerage firms positions GSK PLC (GSK, Financial) at an average recommendation score of 2.9, classifying it under a "Hold" status. The recommendation scale spans from 1, representing a "Strong Buy," to 5, indicating "Sell."
GuruFocus GF Value Estimate
GuruFocus presents a compelling case for undervaluation with its GF Value estimate for GSK PLC (GSK, Financial) pegged at $46.64 over the next year. This assessment indicates a potential upside of 20.58% from the current market price of $38.68, suggesting significant undervaluation. The GF Value is calculated by considering historical trading multiples, business growth trajectories, and future performance estimates. Investors can explore more detailed insights on the GSK PLC (GSK) Summary page.
