AstraZeneca stock downgraded to Sell by Deutsche Bank on pipeline concerns

Investing.com - Deutsche Bank downgraded AstraZeneca (NASDAQ:AZN) (AZN:LN) from Hold to Sell on Thursday, while reducing its price target to GBP105.00 from GBP110.00. The stock, currently trading near its 52-week high of $86.57, has shown strong momentum with a 27% return over the past six months according to InvestingPro data.

The downgrade comes as AstraZeneca trades near the top of its recent price range, with Deutsche Bank expressing increased skepticism about the pharmaceutical company’s pipeline outlook, particularly following its analysis of the breast cancer treatment space.

Deutsche Bank specifically noted concerns about AstraZeneca’s selective estrogen receptor degraders (SERDs), including camizestrant, which the bank believes are "unlikely to show meaningful benefit over current standard of care in all-comers."

The bank’s revised price target of GBP105.00 represents an implied FY26 price-to-earnings ratio of 14x, which Deutsche Bank indicates is in line with AstraZeneca’s peer group.

While acknowledging that AstraZeneca’s current valuation of 17x FY26 P/E is only around the midpoint of its decade multiple range (13-24x), Deutsche Bank highlighted the company is approaching "material patent pressures" beginning with Farxiga in the first half of 2026. For a deeper analysis of AstraZeneca’s valuation and future prospects, investors can access comprehensive Fair Value estimates and 13 additional key insights through InvestingPro’s detailed research reports.

In other recent news, AstraZeneca announced that its experimental drug baxdrostat successfully met the primary endpoint in the Phase III Bax24 clinical trial for patients with resistant hypertension. The drug demonstrated a statistically significant reduction in 24-hour ambulatory systolic blood pressure compared to placebo, marking a promising development for patients with treatment-resistant hypertension. Additionally, AstraZeneca has committed to a substantial investment of $4.5 billion in a new manufacturing facility in Virginia, which will support the production of drug substances for its weight management and metabolic portfolio, including cancer treatments.

The company also reached an agreement with the US government to lower the cost of prescription medicines for American patients, offering discounts of up to 80% off list prices through the TrumpRx.gov platform. In another strategic move, AstraZeneca has partnered with biotechnology company Turbine to enhance the discovery of antibody-drug conjugates (ADCs) using artificial intelligence, aiming to streamline the drug discovery process.

These developments reflect AstraZeneca’s ongoing efforts to expand its capabilities in drug manufacturing and discovery while making medicines more accessible to patients.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.