No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - UBS has upgraded AstraZeneca to a 'buy', citing the London-listed pharmaceutical firm's "sector-leading" drug pipeline.
In a note published on Thursday, UBS - which previously had a 'neutral' rating - said AstraZeneca had scored second among global pharma peers, based on the Swiss bank's analysis of six strategic parameters.
It continued: "We see significant upside from in-market growth drivers and the broadest late-stage pipeline among its peers.
"We see recent quantification on the potential liability from China importation investigation as a meaningful step to resolution of investor concerns."
It noted that AstraZeneca's current valuation, of around 14.7 times company core 2026 estimated PE, reflected a 12% premium relative to peers.
"This is justified in our view by the superior growth and above-sector research and development productivity at AstraZeneca," it argued.
"We see new Phase III from seven new drugs and multiple large life cycle management opportunities as key drivers of outperformance in 2025/26."
As at 1130 GMT, shares in AstraZeneca were up nearly 2% at 11,988.0p. UBS has a 12-month price target for the stock of 14,200p.
Last week AstraZeneca post forecast-beating numbers for 2024, including a 21% surge in annual revenues, fuelled by strong demand for its cancer and cardiometabolic drugs.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.