The GSK share price is trading lower today, despite the call by analysts at Berenberg that the stock is undervalued. However, the Berenberg analysts think there will be a price drop before the stock takes off, which informs their decision to cut the target price from 1625p to 1540p.
GSK has had several suitors for its Consumer Healthcare division. The valuation of this division could make any potential buyout the most expensive in history, which informs the “Buy” recommendation of Berenberg. However, the reduced price target gives the bears some room to act before any takeover for this division is completed.
The GSK share price is currently trading lower by 0.5%.
GSK Share Price Outlook
The intraday decline is pushing the GSK share price towards the 1382.6 support level. A breakdown of this level is required for 1359.0 to become available as additional support. This move also challenges the channel’s lower border, and a continued decline breaks down the channel and makes 1323.2 available.
On the flip side, a bounce on the 1382.6 support could allow the bulls to aim at the channel’s upper border. A breakout here would need to take out 1415.0, which makes 1432.0 and 1450.0 likely candidates for additional destinations to the north.
GSK: Daily Chart
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