UBS maintains a buy rating on AstraZeneca, arguing the recent 15% sell-off is overdone and highlighting the company's path to $80 billion in revenue by 2030 despite recent clinical setbacks.
UBS kept its buy rating and sees over 25% upside despite the recent 15% share slide after trial failures and merger speculation.
Bristol Myers Squibb is mentioned as a potential merger partner with AstraZeneca, but UBS said a deal made little sense.
Roche is referenced as a European peer trading at a higher valuation than AstraZeneca.
Novartis is referenced as a European peer trading at 15 times forecast 2027 earnings.
UBS maintains a buy rating on AstraZeneca, citing significant upside potential despite a 15% decline in share price since July. The bank dismisses recent merger speculation with Bristol Myers Squibb as illogical, emphasizing that the company remains on track to reach its $80 billion revenue target by 2030 through robust pipeline developments.
The decline was driven by two late-stage clinical trial failures for Wainua and camizestrant, alongside market speculation regarding a potential merger with Bristol Myers Squibb.
AstraZeneca trades at approximately 14.3 times forecast 2027 earnings, which is lower than Roche at 17.4 times and Novartis at 15 times.