Berenberg Upgrades GSK to Buy on Pipeline Progress
GSK shares reacted to a Berenberg upgrade citing R&D momentum, coinciding with a reported doubling of profits to EUR 5.77 billion and a market cap near USD 100.6 billion.
GSK plc saw analyst sentiment shift as Berenberg raised its rating from Hold to Buy on September 20, 2026. The brokerage lifted its price target from GBP 20 to GBP 22, attributing the change to stronger pipeline momentum and recent business development activity that supports the company's long-term growth outlook.
This upgrade provides a quantified signal of potential upside, explicitly linking the valuation adjustment to GSK's R&D assets and external deal-making rather than short-term cost measures. The move underscores a view that the current discount versus peers is excessive given the firm's operational trajectory.
Profitability doubles in first half
According to AD HOC NEWS, GSK reported a 100 percent increase in profit for the period up to September, reaching EUR 5,768 million. This significant expansion in profitability occurred alongside improved forecasts, indicating that operating performance is strengthening in line with the revised analyst expectations.
The company continues to distribute dividends, reinforcing the narrative that shareholder returns are moving in a supportive direction. The combination of doubled profits and maintained payout signals a stable cash flow profile underpinning the valuation uplift.
Market cap near hundred billion
As of September 20, 2026, GSK shares traded at USD 50.22, reflecting a 1.65 percent decline on the day. The company’s market capitalization stood at USD 100.62 billion, placing it among the largest European pharmaceutical groups and highlighting its scale within the global healthcare sector.
Listed on the London Stock Exchange and a constituent of the FTSE 100, the company’s valuation in US dollar terms sits below the raised Berenberg target when adjusted for exchange rates. This positioning suggests room for appreciation in local currency terms, consistent with the brokerage's upgraded stance.
