AstraZeneca share price: Deutsche Bank forecasts ‘inflection point’ for pharmco

on May 16, 2017
Updated: Oct 21, 2019
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Deutsche Bank sees an ‘inflection point’ for AstraZeneca (LON:AZN) this year, the analysts have said. The comments came as the bank reiterated its bullish stance on the Anglo-Swedish drugmaker.

AstraZeneca’s share price has been steady in London in today’s trading, having added 0.48 percent to 5,219.00p as of 14:28 BST, slightly underperforming the broader London market, with the benchmark FTSE 100 index currently 0.84 percent better off at 7,517.24 points. The group’s shares have added more than a third to their value over the past year, and are up by some 17 percent in the year-to-date.

Deutsche Bank reiterated its ‘buy’ rating on AstraZeneca yesterday, while lifting its price target on the shares from 5.350p to 5,700p. The move followed encouraging initial results from its Pacific lung cancer trial, which, the bank argues, mean that the blue-chip pharmco can reduce its reliance on a second trial called Mystic.
“We believe the Pacific study’s early readout suggests a meaningful benefit and the lack of alternatives for patients with locally advanced lung cancer should ensure approval,” Deutsche Bank’s analyst Richard Parkes commented, as quoted by Citywire. “As a result, we believe this represents a major inflection point for AstraZeneca’s immune-oncology platform and reinvigorates our conviction in the company’s potential return to strong growth.”

AstraZeneca has bet on oncology as one of its key areas, expected to help the company return to growth amid competition from cheaper generics on some of its top-selling drugs. Earlier this year, the Anglo-Swedish pharmco said that it was hoping that it was about to turn a corner this year as it brings new treatments to market.
HSBC meanwhile reiterated its ‘reduce’ rating on the FTSE 100 pharmco yesterday, valuing the shares at 4,200p. According to MarketBeat, AstraZeneca currently has a consensus ‘hold’ rating and an average price target of 4,982.55p.
As of 14:49 BST, Tuesday, 16 May, AstraZeneca plc share price is 5,221.00p.

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