Proactive Investors - Shares in AstraZeneca PLC (LON:AZN) were trading just off their all-time high as leading analysts provided a largely positive assessment of its growth plans, the highlight of which was a 2030 revenue target of $80 billion - a 75% increase on last year's total.
There were some reservations following the drugs giant's investor day hosted by CEO Pascal Soriot, notably around its aspirations to grow the operating profit margin to 35%.
Stifel in a note to clients called the gathering a 'semi-success' as it restated its 'buy' advice and £137 a share valuation of the stock.
"We believe that AstraZeneca (NASDAQ:AZN) delivered a very informative day that celebrated a powerful organization obsessed by innovation, which looks at how to grow over the short, mid and long term and managed by a very talented team," it added.
The American bank went on: "Why would it then be only a semi-success? For a couple of main reasons, in our view.
"First, below the revenue line, the other pieces of the guidance remain relatively more aspirational. If the operating margin is expected to reach the 35% point by 2026, afterwards it becomes a floor but with no clear engagement, when a gradual improvement was expected."
Citi repeated its 'high conviction' call on the stock, noting: "We expect investors to focus on the $80bn revenue composition and the scope for margins to exceed 35%, without sacrificing R&D investment.
"Oncology, biopharma, and rare diseases will remain the key growth drivers, with 20 new medicines expected to be launched by 2030."
Barclays (LON:BARC), which remains 'overweight' on the stock with a £135 price target, added: "As we get more data and as the pipeline matures, we see this as a story that will continue to grind higher."
In late morning trading, the stock drifted 30p lower (and in line with the wider market) to £123.34.