J.P. Morgan reaffirms its Sell rating on GSK plc (NYSE: GSK), citing ongoing challenges in drug pipeline momentum and near-term revenue visibility. The stance reflects cautious sentiment among major analysts despite GSK’s defensive healthcare sector positioning.
- J.P. Morgan maintains a Sell rating on GSK plc (NYSE: GSK)
- Target price set at $58.00 per share, implying ~12% downside
- Projected 2025 revenue growth of 2.5% to 3.0%
- Dividend yield of ~3.8% remains a key holding factor
- Late-stage pipeline for immunology therapies under evaluation
- Market cap of ~$220 billion, a major player in global pharma
J.P. Morgan has maintained its Sell rating on GSK plc, the UK-based pharmaceutical giant, following its latest equity research update. The firm continues to view GSK’s current valuation as insufficiently supported by near-term growth catalysts, particularly regarding the performance of its respiratory and oncology product lines. Despite GSK’s stable cash flow generation and strong dividend yield of approximately 3.8%, the firm sees limited upside in the next 12 to 18 months. The downgrade sentiment stems from a combination of factors, including modest top-line growth projections of 2.5% to 3.0% for fiscal 2025, well below the sector average. Analysts also note that GSK's upcoming pipeline data, particularly from the late-stage trials of its investigational immunology therapies, remains uncertain and could face regulatory scrutiny. The firm’s base-case valuation model assigns a target price of $58.00 per share, implying a potential 12% downside from current levels as of December 2025. Investors in the pharmaceutical sector are closely monitoring the signal, as J.P. Morgan’s stance may influence institutional positioning. GSK’s market cap stands at approximately $220 billion, making it one of the largest firms in the global healthcare space. The Sell rating could affect passive fund allocations and trigger reevaluation by income-focused portfolios that have historically held GSK for its dividend reliability. The broader impact includes heightened scrutiny on other large-cap drugmakers with similar commercial profiles, particularly those in respiratory and autoimmune therapies. GSK’s share price has traded in a narrow range of $65.10 to $67.80 over the past three months, reflecting investor indecision amid conflicting signals from earnings reports and R&D updates.