Analyst Sachin Jain of Bank of America Securities reiterated a Buy rating on AstraZeneca, retaining the price target of p14,500.00.
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Sachin Jain’s rating is based on AstraZeneca’s promising pipeline and attractive valuation. The company is expected to deliver high single-digit sales growth over the mid-term, supported by a robust lineup of upcoming clinical trial results. These include pivotal studies like AVANZAR in non-small cell lung cancer and SERENA-4 in metastatic breast cancer, which could significantly enhance sales prospects.
Furthermore, Jain highlights the potential for AstraZeneca to achieve a rerating in its price-to-earnings ratio, moving from 16x to 18x by 2026. This is underpinned by anticipated earnings growth and operational margin expansion. The analyst also notes the positive risk-reward profile of AstraZeneca’s stock, given the market’s conservative expectations for peak sales in key areas, thus presenting a compelling investment opportunity.
In another report released on September 2, Barclays also maintained a Buy rating on the stock with a £140.00 price target.
Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AZN in relation to earlier this year.