AstraZeneca: Liberum raises target, still a buyer
(CercleFinance.com) - Liberum has raised its target price for the AstraZeneca share from 5,800 pence to 6,400 pence, while maintaining its "buy" rating on the stock, after the Anglo-Swedish drugmaker signed a collaboration deal with Japan's Daiichi Sankyo to co-partner on cancer drug development.
After looking at the sales potential of the drug in HER2+ cancers, Liberum said it should become a blockbuster drug in its first indication, and has every chance of reaching over three billion dollars in sales globally.
However, the real value in this deal will only be visible in earnings after 2023, when clinical trials open up larger patient populations, the broker wrote.
Nevertheless, this prospect boosts long-term valuation of the share, it said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
After looking at the sales potential of the drug in HER2+ cancers, Liberum said it should become a blockbuster drug in its first indication, and has every chance of reaching over three billion dollars in sales globally.
However, the real value in this deal will only be visible in earnings after 2023, when clinical trials open up larger patient populations, the broker wrote.
Nevertheless, this prospect boosts long-term valuation of the share, it said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.