Goldman Sachs cuts AstraZeneca stock price target to GBP150.67

Published 10/02/2025, 12:24
Goldman Sachs cuts AstraZeneca stock price target to GBP150.67

On Monday, Goldman Sachs updated its price target on AstraZeneca (NASDAQ:AZN:LN) (NASDAQ: AZN) shares to GBP150.67, down from GBP155.58, while reaffirming a Buy rating on the stock. The adjustment follows a detailed analysis of the company’s financial outlook and recent developments, particularly in the China market. According to InvestingPro data, AstraZeneca, currently valued at $224 billion, appears undervalued based on its Fair Value analysis, with analysts setting price targets ranging from $67 to $100.

Goldman Sachs expressed continued confidence in AstraZeneca, citing a robust pipeline of products that could significantly contribute to achieving the company’s ambitious revenue goal of $80 billion by 2030. The firm’s analysts were optimistic about AstraZeneca’s performance, especially after the FY24 earnings report, which showed a strong top-line number and an FY25 forecast that aligns with expectations. InvestingPro data reveals impressive revenue growth of 18% over the last twelve months to $54.1 billion, with the company maintaining dividend payments for 33 consecutive years.

The analysts noted that the impact of ongoing investigations in China seems manageable, based on several factors. AstraZeneca’s potential fine for unpaid importation taxes was considered modest at approximately $4.5 million. Additionally, the positive commentary from management during the earnings call, particularly regarding the dynamics of products like Tagrisso, which leads the market in China, contributed to the firm’s positive stance. The company’s financial health is rated as "GREAT" by InvestingPro, with strong profitability metrics including an 82% gross profit margin.

Despite the challenges in China, Goldman Sachs does not see them as a significant deterrent to AstraZeneca’s stock performance. The firm acknowledged that while the updates on China might not entirely eliminate the overhang on the stock, they should offer reassurance to investors. The recent recovery in AstraZeneca’s stock price was seen as a response to the overreaction to the initial disclosure of the investigations, as well as a "catch-up" to favorable developments such as Datova’s breast cancer approval and TL05 data, which has shown promise in the 2L+ EGFR+ NSCLC setting. With a strong analyst consensus recommendation of 1.55 (Buy) and historically low price volatility, AstraZeneca continues to demonstrate resilience in the pharmaceutical sector.

In other recent news, AstraZeneca has been making significant strides in the pharmaceutical sector. The company’s drug Imfinzi is on track for approval in the European Union as a treatment for limited-stage small cell lung cancer, following a recommendation from the Committee for Medicinal Products for Human Use. This news comes on the heels of AstraZeneca’s Enhertu and Datroway gaining FDA approval for the treatment of various forms of breast cancer, marking significant advancements in available treatment options.

Analysts from Berenberg have reiterated their Buy rating on AstraZeneca, maintaining a price target of GBP140.00. The company’s extensive pipeline for 2025 and potential high-single-digit revenue growth were highlighted as reasons for this positive outlook.

AstraZeneca has also announced a significant investment of $570 million in Canada, which is expected to create over 700 new jobs. This investment aligns with the company’s global goal to achieve $80 billion in total revenue and introduce 20 new medicines by 2030.

These recent developments underscore AstraZeneca’s commitment to advancing medical treatments and making significant contributions to the global healthcare landscape.

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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