Gavin Graham GlaxoSmithKline PLC GSK-N PAST TOP PICK Feb 28, 2023

This large global biopharma company has reported continued success in a oncology based treatment for a blood cancer effecting 180,000 new patients annually.  The company is building cash reserves while debt is retired.  It trades at 22x earnings and supports a 21% ROE.  We recommend setting a stop-loss at $27, looking to achieve $45 -- upside potential of 26%.  Yield 4.5%

We reiterate GSK as a TOP PICK.  We like that cash reserves are holding steady, despite an aggressive retirement of debt.  It trades at 22x earnings and supports a 18% ROE.  The solid dividend is backed by a payout ratio under 50% of cash flow.  The company is partnering with another pharma to develop Parkinson's disease treatments.  We continue to recommend a stop at $27, looking to achieve $41 -- upside potential over 20%.  Yield 4.6%

Our PAST TOP PICK with GSK is progressing well.  To remain disciplined, we recommend trailing up the stop (from $27) to $32 at this time.  

Our PAST TOP PICK with GSK has achieved its target at $41.  To remain disciplined, we recommend covering half the position at this time and maintaining the stop at $32.  

Our PAST TOP PICK with GSK is progressing well.  To remain disciplined, we recommend trailing up the stop (from $32) to $36 at this time.