GSK share price made a strong rebound in October as investors buy the company’s dip. At the time of writing, the company’s shares were trading 1.70% higher at 1470p, the highest level since August 15. However, the stock is 20% below its highest level this year in July. The company has a total market capitalization of 58.74 billion pounds.
GlaxoSmithKline plc is a British multinational pharmaceutical and biotechnology company with global headquarters in London, England. The pharmaceutical company is valued at over $67 billion. The firm conducts medical research and creates products like vaccines, specialty medicines, and general medicines. GSK has over 20 vaccines in its portfolio that are administered to over 2 million patients daily.
GSK share price was in the spotlight earlier on Wednesday as the company announced its third-quarter earnings. The company’s shares jumped as they reacted to the earnings report. The drugmaker’s sales for the third quarter jumped 9% to 7.8 billion pounds compared to the previous year. Its adjusted operating profit edged 18% higher to 2.6 billion pounds, beating consensus analysts’ estimates.
Vaccine sales rose 5% at constant currencies to 2.6 billion pounds in the July-September quarter. This rise was boosted by the post-pandemic rebound, with sales of the shingles vaccine, Shingrix, soaring 36% to 760 million.
According to GlaxoSmithKline’s chief executive officer, Emma Walmsley, the company anticipates good momentum in 2023. GSK lifted its annual sales growth forecast to between 8% and 10%. It also increased its adjusted operating profits for this year to between 15% and 17% this year. However, the company expects its Covid-19-related sales to be substantially lower in the future.
GSK Share Price Forecast
The daily chart shows that the GSK share price has been on a strong bullish trend in the past few weeks. In this period, it has managed to move above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is stable at 58.
Therefore, with the company’s positive momentum for the future, the GSK stock price is likely to continue its bullish run. If this happens, bulls will be eyeing the resistance at 1600p. however, a move below the support at 1375p will invalidate this bullish view.