AstraZeneca lifted by HSBC upgrade to 'buy'
Pharmaceuticals giant AstraZeneca got a boost after HSBC upgraded the stock to ‘buy’ from ‘hold’ on share price weakness and ahead of oncology news flow.
AstraZeneca
12,170.00p
16:40 01/05/24
FTSE 100
8,121.24
16:49 01/05/24
FTSE 350
4,464.43
17:14 01/05/24
FTSE All-Share
4,418.60
16:54 01/05/24
Pharmaceuticals & Biotechnology
23,158.72
17:14 01/05/24
The bank noted that AZN’s shares have fallen 8% since the beginning of August and 16% since the year’s highs in April. It attributed the decline in the short term more to global market volatility than any fundamental issues with the stock.
In addition, HSBC said AZN has a large amount of news flow on late-stage research & development pipeline products due before the year-end, especially in the oncology and immuno-oncology areas, with AZD9291, tremelimumab and durvalumab clinical data, which could be material for the shares.
“In our view, AZN’s oncology franchise is likely to be the main driver for the growth of the business over the next decade, with oncology revenues increasing from $2.7bn in 2015e to $17.8bn by 2023e, on our estimates.This will more than offset the challenges for the group in other competitive therapeutic areas such as diabetes.”
The bank cut its price target to 4,600p from 4,640p as it adjusted its forecasts following AZN’s deal to out-licence brodalumad to Valeant Pharmaceuticals.