AstraZeneca: Liberum upgrades to 'buy'
(CercleFinance.com) - Liberum has upgraded the AstraZeneca stock from "hold" to "buy," with a target price of 8,250 pence, after the drugmaker's quarterly profit smashed analysts' expectations yesterday.
In a note entitled "stronger than expected, for longer than expected," the British broker wrote that the company is emerging from a major sales and earnings decline with a refreshed portfolio of products.
"In the next 5 years we forecast the portfolio adding 13.8 billion dollars in product sales but just 4.6 billion dollars in operating costs," it said.
"As a result, EBIT will grow at 18% per annum, and core EPS at 19% per annum," Liberum added.
As has been the case in the past with such situations, the consensus is underestimating the leverage, the broker pointed out, noting that the company is growing much faster than the rest of the sector.
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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.
In a note entitled "stronger than expected, for longer than expected," the British broker wrote that the company is emerging from a major sales and earnings decline with a refreshed portfolio of products.
"In the next 5 years we forecast the portfolio adding 13.8 billion dollars in product sales but just 4.6 billion dollars in operating costs," it said.
"As a result, EBIT will grow at 18% per annum, and core EPS at 19% per annum," Liberum added.
As has been the case in the past with such situations, the consensus is underestimating the leverage, the broker pointed out, noting that the company is growing much faster than the rest of the sector.
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.