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On Wednesday, AstraZeneca (NASDAQ:AZN) shares received a vote of confidence from BNP Paribas (OTC:BNPQY) Exane as analyst Peter Verdult initiated coverage with an Outperform rating and a price target of GBP115.00. The timing is notable as InvestingPro data shows the stock trading near its 52-week low, with two analysts recently revising earnings estimates upward. Verdult’s positive outlook is rooted in the company’s strong leadership and research and development team, which he believes investors should support.
Verdult’s analysis suggests that AstraZeneca’s 2030 revenue goal of $80 billion is within reach, surpassing the consensus estimate of $75 billion. This target represents significant growth from the company’s current revenue of $54.07 billion. This optimism is based on the potential for geographic and label expansion of current growth drivers, the company’s pipeline potential, and strategies for franchise extension. He sees these factors as key drivers for the company’s growth over the next decade. InvestingPro subscribers can access detailed growth forecasts and 8 additional exclusive tips about AstraZeneca’s potential.
The analyst’s forecasts for AstraZeneca’s revenue and earnings per share (EPS) growth compound annual growth rate (CAGR) from 2025 to 2030 are 7% and 13%, respectively. These projections are notably more bullish than the consensus, with Verdult’s sales and EPS estimates standing 7% and 16% higher than the average expectations. The company’s strong financial health, rated as GREAT by InvestingPro, and its 33-year track record of consistent dividend payments support these growth projections.
Verdult’s valuation is driven by a discounted cash flow (DCF) model, which also presents a bull case with a potential upside to GBP162 and a bear case with a downside to GBP82. This range indicates a significant skew towards positive outcomes, highlighting the analyst’s confidence in AstraZeneca’s future performance.
AstraZeneca’s stock performance will be closely watched by investors as the company aims to meet its ambitious revenue targets through its strategic initiatives and robust pipeline. Verdult’s endorsement underlines the potential for AstraZeneca to outperform in the pharmaceutical industry.
In other recent news, AstraZeneca has announced several significant developments. The company reported that shareholders approved all resolutions at its Annual General Meeting, including financial accounts and strategic reports for the year ending December 31, 2024. Notably, shareholders confirmed interim dividends and reappointed PricewaterhouseCoopers LLP as the auditor. AstraZeneca also received European Union approval for its drug Imfinzi, combined with chemotherapy, for treating a specific form of lung cancer. This approval is based on the AEGEAN Phase III trial, which showed a 32% reduction in the risk of disease recurrence compared to chemotherapy alone. Additionally, AstraZeneca’s Enhertu received EU approval for treating a particular type of metastatic breast cancer, following positive outcomes from the DESTINY-Breast06 Phase III trial. In cardiovascular news, AstraZeneca’s experimental drug AZD0780 showed promising results in a Phase IIb trial, significantly reducing LDL cholesterol levels. These recent developments highlight AstraZeneca’s ongoing efforts to expand its treatment options across various therapeutic areas.
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