AstraZeneca PLC (LSE:AZN)‘s premium growth rate and R&D story are still not fully appreciated by the market.
This, at least, is the conclusion of the life sciences team at the UBS, which also believes competition fears around AZ’s blockbuster cancer drug Tagrisso have been overdone.
“Tagrisso remains at least one step ahead of the competition benefiting from an established position as the standard of care and first-mover in existing indications,” the Swiss bank said in a note to clients.
“Hansoh’s almonertinib has emerged as a challenger however we are yet to be convinced the product can deliver data that would dislodge Tagrisso in the first-line lung cancer setting.”
UBS re-issued its ‘buy’ recommendation and GBP100 a share price target, which is around a 10% premium to the current share price.
Deutsche Bank, meanwhile, reiterated its positive stance and GBP105 a share valuation.
It did so after speaking to Daaichi Sankyo, AZ’s partner on the breakthrough breast cancer drug Enhertu.
Of the 27 banks and brokerages covering AZ, 23 have positive recommendations on its stock.
The consensus price target is around 12% higher than the current share price, while the median profit forecast for 2021 is 136% ahead of the 2020 total.