AstraZeneca: Jefferies reduces target price

(CercleFinance.com) - Jefferies maintains its Buy rating on AstraZeneca shares, with a price target reduced from 13,000 to 12,500 pence.


Jefferies indicates that AstraZeneca should maintain its R&D level at around 22%, a level justified by the depth of the pipeline and the opportunities offered by late-stage assets.

According to the analyst, this level of R&D should result in an EPS decline of up to 5%. Jefferies also expects a Core EBIT margin of 36% by 2028, compared with the consensus of 38%.

If AstraZeneca is primarily a story of sales growth and pipeline, margin clarification may be needed for upside potential in the shares", says the broker.

"Our buy thesis remains intact, with upside potential generated by Airsupra, tozorakimab and Farxiga follow-ups", adds the analyst in substance.

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