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On Wednesday, TD Cowen reiterated their Buy rating on AstraZeneca (NASDAQ:AZN) stock with a price target of $95.00. The firm’s analyst highlighted the pharmaceutical company’s promising new products and its participation in large, high-growth markets. With a market capitalization of $237.7 billion and a "GREAT" financial health rating according to InvestingPro, AstraZeneca’s late-stage pipeline is expected to deliver frequent updates on its progress, with the potential to drive the company’s earnings per share (EPS) growth, which is projected to be among the best in the industry.
AstraZeneca’s strong growth prospects are complemented by what TD Cowen considers an attractive valuation. While the stock currently trades at a P/E ratio of 33.79x, it is trading at 17.8 times and 16.1 times the firm’s 2025 and 2026 EPS estimates, respectively. The stock has shown strong momentum with a 19.28% gain year-to-date. The $95 price target set by TD Cowen is based on just 19.7 times their 2026 EPS estimate of $9.65.
The analyst expressed a positive outlook on AstraZeneca’s future, stating that the company’s outlook is one of the strongest in the pharmaceutical sector. With impressive revenue growth of 18% and a 33-year track record of consistent dividend payments, AstraZeneca demonstrates remarkable stability. Despite this, the valuation remains only modestly above the average for the sector. The current valuation is deemed very compelling by TD Cowen, especially considering that few pharmaceutical companies offer the combination of strengths that AstraZeneca does.
Investors are being pointed towards AstraZeneca’s EPS growth and its potential upside, as well as the company’s ability to provide consistent updates on its pipeline. With a robust lineup of new products and a strong presence in growth markets, AstraZeneca appears well-positioned for the future according to TD Cowen’s analysis. For deeper insights into AstraZeneca’s valuation metrics and growth potential, including 10+ additional ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, AstraZeneca PLC (LON:AZN) has announced that its immunotherapy drug, Imfinzi, has been approved by the European Union for treating limited-stage small cell lung cancer, marking it as the first immunotherapy option for this condition in Europe. The approval was based on the ADRIATIC Phase III trial results, which showed a 27% reduction in the risk of death compared to a placebo. Additionally, AstraZeneca has made a strategic move to acquire biotechnology firm EsoBiotec for up to $1 billion, aiming to enhance its cell therapy capabilities with EsoBiotec’s innovative ENaBL platform. The acquisition is expected to close in the second quarter of 2025 and will not impact AstraZeneca’s financial guidance for that year.
Furthermore, AstraZeneca’s Chief Executive Officer, Pascal Soriot, acquired 89,962 ordinary shares following the vesting of a performance-based award from the AstraZeneca Performance Share Plan. The company also announced the date for its 2025 Annual General Meeting, scheduled for April 11, 2025, which will be digitally enabled for remote shareholder participation. In other developments, AstraZeneca reported positive results from the MATTERHORN Phase III trial, where Imfinzi, combined with FLOT chemotherapy, showed a significant improvement in event-free survival for early-stage gastric and gastroesophageal junction cancers. These recent developments underscore AstraZeneca’s ongoing efforts in expanding its oncology portfolio and advancing its cell therapy initiatives.
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