Last checked at (Sharecast News) - HSBC upgraded AstraZeneca to 'hold' based on stronger commercial delivery and expected further good news about Covid-19 vaccines.
AstraZeneca's results showed good execution of its research pipeline with strong performances from cancer treatments Tagrisso, Imfinzi and Lynparza, HSBC said. The bank's analysts said they had harboured concerns about AstraZeneca's ability to turn research into revenue.
After Pfizer's announcement that its coronavirus vaccine, developed with BioNTech, was effective against Covid-19, HSBC said further positive news about vaccines should support the shares of AstraZeneca, which is working on a vaccine with Oxford University.
HSBC'\s analysts increased their rating on AstraZeneca shares to 'hold' from 'reduce' and nudge up their share price target to £72.60 from £71.20. They reduced their 2020 forecasts, predicting 8% revenue growth to $26.4bn, down from a previous estimate of $26.8bn, and core earnings up 16% to $4.08 per share compared with an earlier estimate of $4.18.
"AstraZeneca has begun successful execution of its R&D pipeline," analysts Julie Mead and Steve McGarry said in a note to clients. "We expect more Covid-19 vaccine news flow on the horizon that suggests the shares are likely to be supported at current levels."
The FTSE 100 drugs group's third quarter had various disappointments including revenue missing consensus by 1% and core earnings 6% less than expectations, the analysts said.
"The company's earnings growth remains one of the highest in the sector and perhaps justifies a premium valuation, Mead and McGarry said.
22 Dec 2023 07:17
AstraZeneca gets FDA green light for nerve disease treatment
(Sharecast News) - The US Food and Drug Administration has approved the Wainua nerve disease treatment jointly developed by AstraZeneca and Ionis Pharmaceuticals.
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