(News Bulletin 247) – Bank of America reiterated its buy recommendation on AstraZeneca on Wednesday, with a target price of 12,500 pence, believing that the laboratory’s valuation, its growth and its portfolio of projects more than offset the Nexium folder.
In a research note, the research department highlights an ‘attractive’ valuation (with a 2023 PER of 17x) in view of the superior growth in earnings per share (EPS) that the group should post over the period 2023 -2026.
BofA also points out that AstraZeneca’s agenda promises to be busy for the next 12 to 15 months, with many phase III data on the program.
Expected, among others, are the results of the datopotamab trial in lung cancer, whose annual sales could reach $2.5 billion, as well as those of Enhertu in breast cancer, with commercial potential there. still estimated at $2.5 billion a year.
If all these projects were to result in success, BofA estimates that the annual growth of the activity could accelerate from 5% to 9% over the period 2025-2029, logically leading to a revaluation of the action.
The analyst identifies as main risk the Nexium file, which according to him should know some clarifications next March.
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