Stock market

These FTSE 100 shares could rise 15% to 36% over the next year!

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of Great Britain FTSE 100 The share index has gone gangbusters in recent months. Given the continued improvement in investor confidence and the sustained cheapness of British stocks, there could be more to drive it.

These footy listed companies look particularly cheap at current prices. In fact, Citi analysts believe the value of their shares will rise between 15% and 36% over the next 12 months.

Here’s what investors need to know about them.

GSK

Means a weak development pipeline. GSK (LSE:GSK) has underperformed the broader healthcare industry of late. But recent signs of recovery mean profits are set to pick up sharply.

Just last week, the firm reported positive Phase III results for its Depemokimab asthma fighter. This follows four impressive results at the same testing stage during the first quarter.

GSK now has around 90 products in its R&D pipeline. Given its impressive track record of getting new products off the ground, it now looks in prime shape to fire up sales again.

The pimps in town certainly think so. That’s why they forecast that earnings growth will increase from 3% this year to 10% and 11% in 2025 and 2026, respectively.

There are currently fifteen analyst ratings on GSK shares. And they have an average 12-month price target of £20.32 per share. This is a premium of about 15% from current levels.

Of course, success is not guaranteed in the trial phase. And any failure could depress GSK’s share price. But on balance, I think investing in a drug developer can be a smart move.

JD Sports Fashion

While the wider FTSE 100 has risen, sportswear retailers JD Sports (LSE:JD.) has failed to join the recent rally. This reflects enduring fears over consumer spending, higher-than-expected inflation in its markets and, as a result, the prospect of a disappointing interest rate cut.

However, the City believes that investors may be overly cautious at this time. It expects JD’s share price to reach £168.80 in the next 12 months. This represents a 36% upside from current levels, and is based on the average price forecast of 15 analysts.

At the turn of 2024, JD cut its profit forecast for the 12 months to January, and its share price has since failed to recover. But a reassurance of trading news since then suggests the FTSE firm could be worst off.

In March, he said that trade “according to our expectations” During the first seven weeks of the new financial year

He also predicted that “Trading conditions will improve as we move through the year, helped by a busy summer of sports, a soft comparison to last year from Q2 and an improving product pipeline towards the end of the year.

It’s early days in the new financial era, but City brokers certainly expect earnings to rise significantly from recent levels. Growth is forecast at 8% and 15% for fiscal years 2025 and 2026, respectively, recovering from the 12% decline recorded last year.

JD Sports has an impressive track record of expanding beyond the broader athleisure market. And as it continues to expand — it announced a planned acquisition of US sportswear chain Habit in April — I think both profits and its share price could rise from current levels.


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