Goldman Sachs lifts AstraZeneca stock target, sees growth

On Friday, Goldman Sachs increased its price target on AstraZeneca (NASDAQ:AZN) shares to £151.30 from the previous £150.67. The firm maintained its Conviction Buy rating on the pharmaceutical giant, which currently commands a market capitalization of $224.75 billion. According to InvestingPro data, AstraZeneca has demonstrated robust revenue growth of 18% over the last twelve months. Analysts at Goldman Sachs highlighted the potential for growth in the oral PCSK9 inhibitor market, with AstraZeneca’s AZD0780 at the center of attention.

The analysts’ optimism is partly due to the anticipation of the Phase 2 PURSUIT trial data for AZD0780, which is expected to be presented at the American College of Cardiology ( ACC (NSE:ACC)) on March 31, 2025. This data is seen as a crucial factor that could shape the competitive landscape in the PCSK9 inhibitor space. Investors following this development should note that AstraZeneca maintains a strong financial health score of "GREAT" on InvestingPro, with sufficient cash flows to cover its interest payments.

Goldman Sachs analysts have thoroughly examined the PCSK9 mechanism and provided a market model that forecasts significant growth potential for this class of drugs. They believe that the introduction of oral options like AZD0780 could enhance patient convenience and adherence, as well as improve market access, thereby driving the expansion of the PCSK9 class.

The report also mentions Phase 3 data for a competing drug, enlicitide decanoate (MK-0616), developed by Merck (NSE:PROR) & Co. and covered by analyst Chris Shibutani. This data is expected to be released sometime in 2025, adding to the competitive developments within the field.

AstraZeneca’s focus on developing its small molecule AZD0780 is part of a broader industry trend towards oral therapies for cholesterol management. If successful, these therapies could transform treatment standards and offer patients a more convenient way to manage their cholesterol levels compared to current injectable options. As a prominent player in the pharmaceuticals industry with a 33-year track record of consistent dividend payments, AstraZeneca continues to demonstrate its commitment to both innovation and shareholder returns. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, AstraZeneca has announced a substantial $2.5 billion investment to establish a new research and development (R&D) center in Beijing. This expansion marks the company’s second R&D center in China and is part of a broader strategic partnership with the Beijing Municipal Government. The investment will be spread over the next five years and includes collaborations with local biotech firms such as Harbour BioMed, Syneron Bio, and BioKangtai. The new center will focus on early-stage research and clinical development and is expected to increase AstraZeneca’s workforce in Beijing to 1,700 employees.

Additionally, AstraZeneca’s CEO, Pascal Soriot, has highlighted China’s growing influence in pharmaceutical innovation, suggesting that the country is poised to outpace Europe in this sector. This development comes as AstraZeneca forges new partnerships, including a strategic alliance with the Beijing Cancer Hospital and a joint venture with BioKangtai to develop vaccines. Meanwhile, TD Cowen has reiterated its Buy rating for AstraZeneca stock, setting a price target of $95. The firm pointed to the company’s promising pipeline and its potential to drive earnings per share growth as key factors supporting its positive outlook.

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