AstraZeneca Shares Gain New Bull as Citi Sees Fastest Sector Growth

AstraZeneca's share price (LON: AZN) climbed 0.33% to 13,769.60p early today as Citi initiated coverage with a Buy rating and a 17,000 GBp price target, marking the latest in a string of bullish calls on the Anglo-Swedish pharmaceutical giant.

The Wall Street firm cited the company's position as having the fastest projected mid-term sales and earnings growth in the European pharmaceutical sector, driven by both its existing portfolio and a robust pipeline of experimental therapies.

The Citi endorsement adds momentum to what has been a remarkable period for AstraZeneca, with multiple investment banks raising their price targets and ratings in recent months.

Morgan Stanley lifted its target to 155p from 140p while maintaining an Overweight rating, projecting 11% earnings growth for the company over fiscal years 2026-2029 compared to just 6% for industry peers. The firm highlighted potential upsides not yet fully reflected in market estimates, including higher-than-expected royalties and accelerated product rollouts.

Bank of America followed suit by increasing its price target to $108.50 from $91.70, keeping a Buy rating intact. The bank included AstraZeneca in its top 25 stocks for 2026, noting that the company's mid-term guidance supports a potential re-rating to approximately 19x 2027 estimated price-to-earnings ratio. Guggenheim also raised its target to GBP13,100 from GBP12,600, maintaining a Buy rating and anticipating that ongoing drug trial readouts could provide further catalysts.

Strong Financial Performance

The wave of analyst optimism stems from AstraZeneca's impressive financial performance. In the third quarter of 2025, the company reported a 12% increase in revenue to $15.19 billion, surpassing consensus estimates. The oncology segment led the charge, with key products including Enhertu, Truqap, Imfinzi, Tagrisso, Calquence, and Datroway contributing significantly to growth. Management reiterated full-year 2025 guidance, projecting high single-digit percentage revenue growth and low double-digit percentage growth in core earnings per share.

AstraZeneca has also confirmed its trajectory towards achieving a mid-30s percentage core operating margin by 2026 and its ambitious $80 billion revenue target by 2030. These targets have gained credibility in the eyes of markets following consistent execution and strong product performance across multiple therapeutic areas.

Strategic investments have further bolstered confidence in the company's growth prospects. AstraZeneca announced a $2 billion investment to expand manufacturing capabilities in Maryland, including enhancements to its biologics facility in Frederick and a new clinical manufacturing facility in Gaithersburg. These facilities will support production of medicines for cancer, autoimmune, respiratory, and rare diseases, utilizing advanced technologies including artificial intelligence and data analytics.

In January 2026, the company agreed to acquire Modella AI, a Boston-based artificial intelligence company, to strengthen its oncology research and development efforts. The acquisition aims to integrate Modella AI's data models and analytical tools into AstraZeneca's clinical development and biomarker discovery processes, potentially accelerating the path from laboratory to market.

Despite these concerns, markets appear focused on AstraZeneca's growth trajectory and the strength of its product portfolio. The convergence of multiple bullish analyst calls, strong financial performance, and strategic investments in manufacturing and artificial intelligence suggests sustained confidence in the company's ability to deliver on its ambitious targets through the end of the decade.