UBS ups rating on AstraZeneca to 'buy'
By Abigail Townsend
Date: Thursday 13 Feb 2025
(Sharecast News) - UBS has upgraded AstraZeneca to a 'buy', citing the London-listed pharmaceutical firm's "sector-leading" drug pipeline.
In a note published on Thursday, UBS - which previously had a 'neutral' rating - said AstraZeneca had scored second among global pharma peers, based on the Swiss bank's analysis of six strategic parameters.
It continued: "We see significant upside from in-market growth drivers and the broadest late-stage pipeline among its peers.
"We see recent quantification on the potential liability from China importation investigation as a meaningful step to resolution of investor concerns."
It noted that AstraZeneca's current valuation, of around 14.7 times company core 2026 estimated PE, reflected a 12% premium relative to peers.
"This is justified in our view by the superior growth and above-sector research and development productivity at AstraZeneca," it argued.
"We see new Phase III from seven new drugs and multiple large life cycle management opportunities as key drivers of outperformance in 2025/26."
As at 1130 GMT, shares in AstraZeneca were up nearly 2% at 11,988.0p. UBS has a 12-month price target for the stock of 14,200p.
Last week AstraZeneca post forecast-beating numbers for 2024, including a 21% surge in annual revenues, fuelled by strong demand for its cancer and cardiometabolic drugs.
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