Steve Scala, an analyst from TD Cowen, maintained the Buy rating on AstraZeneca (AZN – Research Report). The associated price target remains the same with $95.00.
Steve Scala’s rating is based on AstraZeneca’s promising new products and robust pipeline, which position the company in several large, high-growth markets. The company is expected to experience significant EPS growth, potentially surpassing industry averages, and its overall outlook is considered one of the strongest within the pharmaceutical sector, despite its valuation being only slightly above the sector average.
AstraZeneca’s solid foundation with established products like Tagrisso, Lynparza, Imfinzi, Calquence, and Forxiga, combined with the potential of recently launched products, suggests substantial sales growth by 2030. Additionally, the company’s innovative pipeline is expected to drive above-average revenue and EPS growth rates from 2024 to 2030. While current investor concerns about the China business and margins exist, Scala anticipates that AstraZeneca’s innovative portfolio will eventually lead to a more balanced investor perspective, potentially enhancing the stock’s P/E multiple.
Scala covers the Healthcare sector, focusing on stocks such as AstraZeneca, Pfizer, and Merck & Company. According to TipRanks, Scala has an average return of 7.0% and a 61.71% success rate on recommended stocks.