GSK: Liberum raises its price target


Liberum reaffirms its ‘buy’ recommendation on GSK while raising its target price from 17 to 18.70 pounds sterling, after the health group announced three offers from Unilever to buy its large health unit from it. public.

The broker points out that the most recent offering valued the unit at £50 billion, around 20 times its 2022 EBITDA estimate for the business, a 33% premium to its last SOTP (sum of the parts) valuation. .

‘It is now difficult to see the unit trading at a significant 20x discount, and it is now likely to be sold at that multiple or more. Above all, a sale would put the new GSK on a solid footing with an excellent balance sheet,’ he said.

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