Market Overview

Argus Upgrades AstraZeneca To Buy, Says Discount Is Too Steep Against Pipeline Potential

Argus Upgrades AstraZeneca To Buy, Says Discount Is Too Steep Against Pipeline Potential
Related AZN
71 Biggest Movers From Yesterday
52 Stocks Moving In Thursday's Mid-Day Session
U.S. healthcare spending to rise 5.5% per annum over next decade (Seeking Alpha)

AstraZeneca plc (ADR) (NYSE: AZN) shares are currently trading at a discount to S&P 500 pharma companies. Argus’ John Eade believes the discount is too steep given the company’s pipeline potential.

Eade upgraded the rating on the company to Buy with a price target of $38.

Coping With Challenges

“While most companies in the Big Pharma group have moved beyond the patent cliff phase and are beginning to grow, AstraZeneca has lagged, as it faces pricing pressure and generic threats to its former blockbusters Nexium (for ulcers) and Crestor (for high cholesterol),” the analyst mentioned.

However, Eade noted management was taking steps address the challenges being faced by AstraZeneca by cutting costs and creating a robust new drug pipeline, which includes “a promising checkpoint inhibitor to treat various cancers.”

Related Link: Here Are All The Big Biotech Mergers In 2016

Secure Dividend

The analyst also pointed out that the stock offers a value opportunity, as well as a secure dividend with a 4.2 percent yield.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for AZN

Dec 2018SunTrust Robinson HumphreyInitiates Coverage OnBuy
Dec 2018JefferiesAssumesHold
Nov 2018InvestecDowngradesBuyHold

View More Analyst Ratings for AZN
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas Upgrades Health Care Analyst Ratings Trading Ideas General Best of Benzinga


Related Articles (AZN)

View Comments and Join the Discussion!

Top Performing Industries For August 29, 2016

Tonix Announces Successful End-of-Phase 2 Meeting with FDA For PTSD Drug