Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Morgan Stanley raised its price target on AstraZeneca (AZN:LN) (NASDAQ:AZN) to GBP155.00 from GBP140.00 on Wednesday, while maintaining an Overweight rating on the pharmaceutical giant.
The investment bank cited AstraZeneca’s sector-leading earnings growth potential, projecting 11% growth over fiscal years 2026-2029 compared to 6% for industry peers. Morgan Stanley expressed a more optimistic view on the company’s pipeline, suggesting longer-term earnings ahead of market consensus.
Morgan Stanley expects AstraZeneca to guide for mid-single-digit percentage sales growth and low-double-digit percentage EPS growth, which would align with consensus estimates and the low end of the company’s margin guidance of approximately 33.9%.
The firm identified three potential sources of upside not fully reflected in current market estimates: Brinsupri royalties exceeding $1 billion to profit, faster Datroway rollout, and Calquence in finite CLL with potential peak sales of approximately $1 billion.
While acknowledging a "trickier set-up" for catalysts in the first half of 2026, Morgan Stanley believes the risk-reward profile becomes more attractive in the second half of the year, with 2026 expected to focus on ATTR-CM and Wainua developments.
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