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AstraZeneca could upgrade expectations after setting out bold growth plans

Published 19/07/2024, 13:17
© Reuters.  AstraZeneca could upgrade expectations after setting out bold growth plans
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Proactive Investors - AstraZeneca PLC (LON:AZN) releases its quarterly results next Thursday in the wake of an Investor Day at which outlined its bold plan to almost double its turnover to $80 billion by the end of the decade bolstered by a strong pipeline of new drugs, particularly in oncology.

Against this backdrop, and a strong financial performance in the first quarter, analysts are now asking whether the Anglo-Swedish drugs giant will upgrade its already bullish financial forecasts for 2024.

The number crunchers are currently being guided for double-digit to low-teens percentage growth at the top and bottom lines. In the first three months, this was achieved as AZ posted a 19% year-over-year jump in turnover and a 13% increase in EPS - even after significant investment in R&D.

Shore Capital believes Soriot et al may well pull the upgrade trigger. Longer-term, the broker is bullish: "A plethora of new blockbusters are expected to launch over the near to medium term and 2025 could be a particularly catalyst-rich period.

"Numerous phase III readouts are due that could support multiple expansions. We have upgraded our long-term forecasts, increasing the risk-adjusted contribution from the pipeline to reflect AstraZeneca’s ambitions of $80bn revenue and a mid-30s per cent core operating margin."

Read more on Proactive Investors UK

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