Astrazeneca Share News (AZN)

(ShareCast News) - The mood in advertising giant WPP should be pretty good, opines Financial Times' Lex column, which, in something of a novelty, cites Martin Sorrell's healthy tan.Something to do with enhanced moods due to the sun and serotonin release, the column wheezed.It noted that, as was typical, the chief executive shied from promising clear skies in the coming months.But, Lex noted, Sorrell did in yesterday's half-year results presentation reiterate how WPP could and would improve its profitability."Should he deliver, brighter times lie ahead."WPP's results were better than expected by the market, in part aided by sterling's decline after the non-binding Brexit vote back in JuneThe ad titan's shares spiked up to 7% on the news, before surrendering some of these gains to finish up about 2%."Sorrell emphasised a forecast of better operating margins to come: up 3 percentage points from last year's 16%," Lex said."Even better, he provided not just where (of the target) but how."Back-office cost-cutting would account for a third of those profitability gains.More qualitatively, Lex contended, WPP needed to squeeze more from the market data it controlled to win and retain clients.It had plenty of data research at its disposal -- unlike some of its peers."Almost a sixth of group profits derives from its data investment management unit, companies such as TNS and Kantar," Lex observed."Using their output better will be Mr Sorrell's next aim."The column further noted that Citi had discovered the key historic driver of WPP's share performance was revenue growth, much of this linked to acquisitions."Mr Sorrell's record here is strong," Lex concluded.WPP traded at 17-times this year's earnings, which was close to its peer group, and the shift in its focus towards making more frm the assets they have is welcome."Mr Sorrell's promised improvements could lift its return on capital closer to the rest, which should earn the shares a valuation premium."Meantime, The Times' Tempus column said there was an irony in the fact that AstraZeneca had chosen Pfizer as the buyer of its antibiotics, three on the market and two under development.It recalled that chief executive Pascal Soriot had been required to introduce some punchy performance targets in 2014 to escape the clutches of an unwanted tilt from none other than Pfizer."The disposal (of antibiotics) is a complex one, involving the payment of as much as nearly $1.6 billion to AstraZeneca in due course, including some staggered payments," Tempus said."It makes perfect sense: Pfizer has expertise in such antibiotics and even the big pharma companies are being required to adopt a more targeted approach to new product development rather than the more scattergun strategy of the past."The deal would allow AstraZeneca to focus on its three main avenues for growth that could allow those targets to be met, including the hot area of immuno-oncology."In earnings terms, AstraZeneca is still in a trough. The shares, up 18p at £50.80, have been such strong performers since the referendum, rising from below £40, that the 4.3% yield is a little less compelling than it once was.""My advice: Hold," said Tempus.