AstraZeneca - Downgrade to HOLD (TP £120 [140], 11 pgs)
We downgrade AZN to HOLD due to near-term EPS risks & key pipeline catalysts weighted to H225. Our analysis of near-term headwinds leaves us 6% below 2025 consensus EPS. A combination of VBP assumptions, pricing reforms, non-recurring one-offs in 2025 and lower alliance revs are the key drivers of our below consensus EPS. However, 2025 appears to be a slow year before a strong pick-up in growth in 2026 & in our view, AZN has the most exciting H225 pipeline setup in EU Pharma. We will revisit AZN for its long-term potential once there is more clarity on the 2025 EPS trajectory.For access to the full note, please contact Naresh Chouhan ( )
AstraZeneca is a holding company. Through its subsidiaries, Co. operates as a biopharmaceutical company engaged in discovering, developing, manufacturing and commercializing its pipeline of small molecule and biologic prescription medicines, including targeted business development through collaboration, in-licensing and acquisitions. Co. is focused on three main therapy areas: Oncology, Cardiovascular and Metabolic Diseases, and Respiratory. Co. is also selectively active in autoimmunity, infection and neuroscience. In addition, Co. works across small molecules, oligonucleotides and other drug platforms, as well as biologic medicines.
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