GlaxoSmithKline (LON: GSK) share price has made a strong rebound recently as investors buy the company’s dip. The shares jumped to a high of 1,433p on Monday, which was the highest level since August 11 of this year. This price is about 11.67% above its lowest level in October.
GSK earnings ahead
GSK is a leading pharmaceutical company valued at over $67 billion. The firm conducts research and development and creates products like vaccines, specialty medicines, and general medicines. It has over 20 vaccines in its portfolio that are administered to over 2 million patients every day.
GSK has been in a transformation journey. Earlier this year, the company separated from its consumer health business, which is now known as Haleon. Haleon is the second-biggest consumer health company valued at over $28 billion, as we wrote in this report.
GSK share price will be in the spotlight this week as the company publishes its third-quarter results. Analysts tracking the company expect that the company’s total turnover was £7.2 billion in the third quarter.
By segment, they expect that its specialty, ex-pandemic solutions, rose to £2.33 billion. General medicines and vaccines turnover is expected to be £2.5 billion and £2.4 billion, respectively. At the same time, the company’s operating profit is expected to come in at £2.27 billion.
Analysts are also optimistic about GSK’s future revenue. For the full year, the company expects that its annual revenue will rise to over £28 billion in 2022 to over £36 billion in 2026.
GSK’s revenues will be boosted by the relatively weaker British pound. Sterling has weakened by more than 15% against the US dollar this year. In a recent statement, GSK said that the impact of the weak pound will have a 9% boost to earnings. This is important since GSK makes most of its revenue in the United States.
GSK share price forecast
The daily chart shows that the GlaxoSmithKline share price has been in a strong bullish rebound in the past few days. In this period, the stock has managed to retest the important resistance level at 1,430p, which was the lowest level on March 7.
Along the way, the stock has moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has continued rising. Therefore, a break above the resistance at 1,435p will signal that bulls have prevailed. As a result, this could see it rise to 1,500p in the near term.
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