AstraZeneca share price: JPMorgan ‘overweight’ on big-cap pharma

By: Tsveta van Son
Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a… read more.
on Sep 6, 2019
Updated: Mar 11, 2020

JPMorgan remains ‘overweight’ on AstraZeneca, pointing to positive trends for the FTSE 100 company and peers Novo and Roche seen in the first half of the year, and positive outlook going forward, Sharecast reports. The update comes follows a string of positive news for some of the Anglo-Swedish drugmaker’s treatments this week.

AstraZeneca’s share price has advanced in London in today’s session, having gained 0.64 percent to 7,237.00p as of 10:50 BST. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.05 percent lower at 7,267.92 points.

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JPMorgan upbeat on big-cap pharma

JPMorgan has reiterated its ‘overweight’ rating on AstraZeneca, without specifying a target on the pharmco’s share price. Sharecast reported yesterday that the analysts had told clients to continue to overweight big market capitalisation pharma stocks versus their smaller mid-cap peers over the next six months.

The analysts pointed to AstraZeneca, Novo and Roche, noting that over the six months of the year, earnings per share (EPS) revisions had remained positive and the outlook for the sector for 2020-23 had improved. The broker further noted that EPS upgrades lay ahead for big-cap pharma over the next six months, courtesy of new launches and pipeline data, which were likely to drive a re-rating for those companies over the next six months.

“While US Healthcare reform headlines could introduce short-term share-price volatility, fundamentally we see no changes to near-term estimates, as we expect no reforms to be implemented prior to the 2020 US election,” JPMorgan pointed out.

Other analysts on AstraZeneca

Barclays, which is bullish on the Anglo-Swedish drugmaker with a ‘buy’ rating, lifted its target on the AstraZeneca share price from 7,800p to 8,000p. According to MarketBeat, the FTSE 100 group currently has a consensus ‘hold’ rating and an average valuation of 6,741.18p.

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