UPDATE: Bank of America Downgrades AstraZeneca to Underperform Following Recent Gain

Bank of America reduced its rating on AstraZeneca

from Neutral to Underperform while maintaining its price objective at $49.50 a share. Bank of America commented, "With shares up c10% since mid-year we now have only 6% upside to our PO of £31, the second lowest amongst EU majors. We recognise that AZN's dividend yield of c6.3% remains the highest in EU big-cap pharma, and at the top end of the historic average within the sector. However, the fundamental outlook remains poor (although well recognized) with a 14-17E sales CAGR of minus 5%, recent product launches (Brilinta and Bydureon) remain lackluster, and the late stage pipeline remains weak, in our opinion." AstraZeneca closed at $46.42 on Friday.