Proactive Investors - AstraZeneca (NASDAQ:AZN) has a “positive catalyst path ahead” in the near term given its oncology project pipelines, according to broker Jefferies, but earnings forecasts were lowered.
A ‘hold’ rating was reiterated for the FTSE 100-listed pharma company as analysts saw “limited upside from the current share price”.
This is despite acknowledging the success of the Enhertu drug to treat breast cancer patients.
It also suggested it was optimistic of the results from AstraZeneca’s ongoing lung cancer trial and said the near-term trajectory was “impressive”.
“Near-term AstraZeneca growth remains attractive, but a potentially slower trajectory from 2026, given numerous patent cliffs may be overlooked,” outlined Jefferies, with around 25% of 2021 sales potentially being lost by 2027.
The analysts cut their 2022 earnings per share forecast to US$6.63 from US$6.84, and to US$7.29 from US$7.29 for 2023.
Elsewhere, broker Shore Capital suggested AstraZeneca was a ‘buy’ last week, following data shared at a San Antonio conference on its late-stage breast cancer drugs.
It said the company’s ongoing projects have the potential to “redefine the standard of care within breast cancer”.
AstraZeneca upgraded its annual guidance in November, suggesting core earnings per share would increase by a high-twenties to low-thirties percentage, having previously been predicted in the mid-to-high twenties range.