- While inflation is the flavour of the day, deflation is a non-negligible risk too in a more normalised environment.
- A good hedge for both these eventualities are non-deferrable products.
- Pharmaceuticals are the first we think of in this category, and among them we think that GSK has some of the best value.
- Both its consumer products and biopharma division have plenty of non-deferrables, and with value to boot we think GSK continues to be an attractive allocation.
- Its consumer products division strikes us as a particularly interesting exposure, so we set the target at which we'd buy them as a NewCo.
For further details see:
GlaxoSmithKline: Gem In Consumer Healthcare, Deflation Resistant, Keep Watch