Equities UK Pharmaceuticals & Health

AstraZeneca share price joins rally as Citi remains bullish

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AstraZeneca’s (LON:AZN) share price has climbed higher in London in today’s session this Wednesday as analysts at Citi reiterated their ‘buy’ rating on the stock and lifted their valuation. Sharecast quoted the broker as commenting that the market continued to  under-appreciate the commercial potential and operating leverage from the pharmco’s treatments such as Tagrisso, Lynparza, roxadustat and Farxiga.

As of 13:30 BST, AstraZeneca’s share price had added 0.92 percent to 6,910.00p. The shares are largely in line with the broader UK market rally, with the benchmark FTSE 100 index currently standing 0.97 percent higher at 7,338.19 points.

Citi bullish on AstraZeneca

Citi reaffirmed its ‘buy’ rating on AstraZeneca today, lifting its target on the pharmco’s share price from 7,000p to 10,000p. The broker further lifted its earnings estimates 4-16-percent from 2023, putting it 28-percent above consensus.

“On Tagrisso, ADAURA and FLAURA2 will drive material increases in treatment duration and market size,” the analysts pointed out, as quoted by Sharecast. “On Lynparza, we are excited by the potential in prostate, SCLC, NSCLC and tissue agnostic indications. On Farxiga, recent data validates our long held conviction on cardio-metabolic potential.”

Citi also noted that the regulatory outlook for Roxadustat remains encouraging following discussions with biostatisticians.

Today’s update comes after earlier this week, the company posted upbeat late-stage trial results for its oncology treatment Imfinzi, while last week, the Anglo-Swedish drugmaker cheered investors with positive trial results for its cardiovascular treatments Brilinta and Farxiga.

Other analysts on pharmco

Societe Generale reaffirmed the blue-chip pharmco as a ‘buy’ yesterday, without specifying a target on the AstraZeneca share price, while UBS, which is bearish on the stock with a ‘sell’ rating, set a valuation of 5,700p. According to MarketBeat, the FTSE 100 drugmaker currently has a consensus ‘hold’ rating and an average price target of 6,929.41p.

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