BofA maintains Buy on AstraZeneca stock, GBP145.00 target

Published 12/02/2025, 12:48
BofA maintains Buy on AstraZeneca stock, GBP145.00 target

On Wednesday, BofA Securities reiterated its Buy rating on AstraZeneca (NASDAQ:AZN:LN) (NASDAQ: AZN), with a steady price target of GBP145.00. The firm’s positive stance is based on the pharmaceutical giant’s valuation, which is deemed attractive at approximately 14 times its projected 2026 earnings per share (P/E). Currently trading at a P/E of 31.91x, with a market capitalization of $225.14 billion, AstraZeneca stands as a prominent player in the pharmaceuticals industry. BofA Securities anticipates a potential rerating of the stock to 18 times its estimated 2026 P/E, bolstered by a mid-term guidance suggesting a high-single digit sales compound annual growth rate (CAGR). According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value model.

AstraZeneca is expected to encounter significant developments in the next 18 months, with multiple pivotal trial results anticipated. These trials collectively hold a sales potential close to $30 billion, building upon the company’s impressive 18.03% revenue growth over the last twelve months. BofA Securities has ranked these upcoming results in order of their potential impact on AstraZeneca’s share price. The AVANZAR trial for Dato 1L NSCLC is at the top of this list, followed by the SERENA-6 trial for Camizestrant in first-line ESR1 mutated breast cancer, with additional readouts expected from the SERENA-4 trial in FY26 and from Roche’s first-line data in the fourth quarter of 2025.

Further down the list, Baxdrostat for hypertension and Eplontersen for ATTR-CM are also highlighted as significant, along with Enhertu for HER2-positive metastatic breast cancer. The company is also preparing for phase III trial results for two additional rare disease treatments that have the potential to be blockbusters: Eneboparatide, a PTH1 agonist, and Efzimfotase alfa for hypophosphatasia.

AstraZeneca’s robust pipeline and the upcoming trial results are key drivers for the reiterated Buy rating and price target, as they represent critical milestones that could substantiate the company’s growth trajectory and reinforce investor confidence in its long-term value proposition.

In other recent news, AstraZeneca has been in the spotlight with several key developments. Morgan Stanley (NYSE:MS) has set a new Overweight rating for AstraZeneca stock, with a price target of GBP145.00, reflecting the firm’s confidence in the company’s future performance. This is due in part to AstraZeneca’s strong product sales momentum, particularly from drugs like Imfinzi, Teszpire, and Enhertu.

Additionally, Goldman Sachs has adjusted its price target on AstraZeneca shares to GBP150.67, reaffirming a Buy rating. The firm’s analysts express confidence in AstraZeneca’s robust pipeline of products and their potential contribution to achieving the company’s ambitious revenue goal.

On the product front, AstraZeneca’s drug Imfinzi has received a recommendation for approval from the European Medicines Agency (EMA) for treating adults with limited-stage small cell lung cancer (LS-SCLC). Another significant development is the U.S. Food and Drug Administration (FDA) approval of AstraZeneca’s Enhertu for treating certain types of breast cancer.

Finally, Berenberg analysts have maintained their Buy rating on AstraZeneca stock, with a price target of GBP140.00. The analysts believe AstraZeneca’s shares trading below the value of its "on-market" drugs present a potentially attractive investment opportunity. These recent developments underscore AstraZeneca’s ongoing progress and potential in the pharmaceutical industry.

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

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