UPDATE: Bank of America Upgrades AstraZeneca plc on Slightly Better Outlook
In a report published Monday, Bank of America analyst Sachin Jain upgraded the rating on AstraZeneca plc (NYSE: AZN) from Underperform to Neutral, and raised the price target from $48.82 to $55.20.
In the report, Bank of America noted, “AZN has underperformed the EU pharma sector by c10% this year and by c25% over the last 2 years. We now upgrade to Neutral for two main reasons: 1) We believe the consensus EPS downgrade cycle is closer to the bottom and; 2) Pipeline newsflow (product launches, PIII and PII) picks up significantly into next year, particularly important given AZN has been devoid of product newsflow for years. In our opinion, it is still too early to become more positive given trough EPS is not till FY17E (post Crestor expiry) and shares remain overvalued on longer-term PE.”
AstraZeneca plc closed on Friday at $52.73.
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