AstraZeneca Pipeline Prospects Remain Largely Unchanged

AstraZeneca’s (LON: AZN) stock price has seen a significant decline in recent months due to ongoing investigations in China and disappointing clinical trial results. 

AstraZeneca shares have declined more than 24% in the last three months, putting it down over 5% for the year-to-date.

Despite these setbacks, analysts at UBS and Berenberg have maintained a somewhat positive outlook on the company’s long-term prospects.

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UBS upgraded AstraZeneca to “Neutral” from “Sell,” citing the stock’s substantial price drop and the potential impact of the China investigations. 

While acknowledging the uncertainty surrounding the investigations, the investment bank believes that the recent approval actions by the China National Medical Products Administration (NMPA) suggest continued support for the company in the Chinese market. 

“Following a 24% fall in AstraZeneca shares over 3 months amid China government investigations and disappointing data on Dato-DXd lung potential, we upgrade AstraZeneca to Neutral (from Sell),” the bank stated.

“While we recognise the potential impact of the ongoing investigations, we believe that recent approval actions of the China National Medical Products Administration (NMPA) indicate that longer-term support for AZN in China remains.”

Meanwhile, Berenberg analysts maintained a “Buy” rating on AstraZeneca on Wednesday, albeit with a lowered price target, which moves to EUR 140 from EUR 150 per share.

The firm said it believes the company’s pipeline prospects remain largely unchanged and that the impact of the China investigations appears to be limited. 

Despite the recent setbacks, Berenberg believes AstraZeneca’s strong product portfolio and robust pipeline position it well for future growth.