GSK (LSE:GSK): Assessing Fair Value After a 10% Share Price Surge

GSK (LSE:GSK) shares have edged slightly lower over the past day, but the stock has seen a steady climb of nearly 10% in the past month. This recent momentum offers an interesting entry point for investors tracking the pharmaceutical sector.

See our latest analysis for GSK.

GSK’s nearly 10% surge over the past month has definitely turned heads, especially as steady results cap off a period of solid momentum. While the company’s latest share price sits at $16.285 and long-term total shareholder returns have climbed over 39% in five years, recent gains signal that investor confidence is on the rise as the sector steadies after some volatility.

If GSK’s renewed momentum has you considering the broader sector, this could be a good time to uncover opportunities among other leading healthcare stocks. See the full list for free.

But with the stock’s latest rally and strong financials, the key question is whether GSK remains undervalued or if all the good news is already reflected in its share price. This could mean there is limited room for further upside.

Most Popular Narrative: 1.3% Undervalued

GSK's current share price is just below the average fair value set by the most widely-followed analyst narrative. This suggests a modest value gap after a strong run. Supporters argue that catalysts for future growth remain intact, setting the stage for further upside if projections hold true.

Strong volume growth in key high-margin areas like oncology (Jemperli, Blenrep), immunology (Benlysta, Nucala, depemokimab), and HIV (long-acting injectables) demonstrates GSK's ability to capture premium pricing and leverage long-term trends toward innovative, biologic, and personalized therapies. This positively impacts future earnings and supports margin expansion as these portfolios scale.

Read the complete narrative.

What are the growth bets powering this bold valuation? The full narrative highlights margin expansion, breakthrough drug launches, and a recalibrated profit multiple that could shift expectations. Ready to see what numbers this all hinges on?

Result: Fair Value of £16.51 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, legal challenges and patent expiries could quickly erode optimism. This could put GSK’s projected growth and undervaluation at risk.

Find out about the key risks to this GSK narrative.

Build Your Own GSK Narrative

Whether you see things differently or want to dive into the numbers on your own, you can craft your personal view in just a few minutes. Do it your way

A great starting point for your GSK research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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