GlaxoSmithKline "add," target price raised

12/09/05 - Dresdner Kleinwort Wasser.

LONDON, December 9 (newratings.com) - Analysts at Dresdner Kleinwort Wasserstein maintain their "add" rating on GlaxoSmithKline Plc (GSK-GBX), while raising their estimates for the company. The target price has been raised from 1574p to 1600p.

In a research note published yesterday, the analysts mention that the sales estimate for the company’s Avandia’s franchise is set to £1.3 billion for 2005, and the sales are likely to grow to £3.3 billion by 2010. GlaxoSmithKline’s long-term growth is expected to driven by several factors, including the Avandaryl product, which is to be launched in early-2006, the analysts say. The EPS estimates for 2006, 2007, 2008, 2009 and 2010 have been raised from 90.1p to 92.3p, from 95.9p to 101.1p, from 102.9p to 110.4p, from 109p to 119.9p and from 120.7p to 134.7p, respectively.