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Cash flow will be king at GSK interims

After decent first-quarter results, expectations are high for the pharma giant's interims next week
July 22, 2016

Since GlaxoSmithKline 's (GSK) full-year results in February, we've had management changes, strategy shifts and clinical updates galore.

IC TIP: Sell at 1658p

Financially, things have also been looking up after first-quarter results came in ahead of expectations. But GSK's reliance on the low-margin consumer healthcare division remains a concern. The big question in terms of our sell advice on this income stock will be whether there is any improvement in cash flow when the group announces interims next week.