AstraZeneca Shares (AZN) Gain as JPMorgan Hikes Price Target

AstraZeneca (LON:AZN) shares climbed 0.78% to 13,698 this morning following JPMorgan's decision to increase its price target to 16,000 GBp from 14,000 GBp. The firm reaffirmed its “Overweight” rating on the shares and included AstraZeneca in its European Analyst Focus List, reflecting a positive outlook on the company's potential.

This rating adjustment is part of JPMorgan's broader 2026 outlook for the European pharmaceutical sector. The firm anticipates that sector performance will be significantly influenced by upcoming pipeline readouts, and has observed that concerns surrounding the impact of U.S. price pressures on sector earnings have largely dissipated in the fourth quarter. Companies lacking significant pipeline developments by 2026 have faced downgrades from JPMorgan, underscoring the importance of a robust product pipeline in sustaining growth and investor confidence.

Adding to the positive sentiment, Goldman Sachs has also increased its price target for AstraZeneca, setting it at £151.30 from £150.67, while maintaining a “Conviction Buy” rating. This optimism is largely fueled by the potential of AstraZeneca's oral PCSK9 inhibitor, AZD0780. Markets are keenly awaiting the Phase 2 PURSUIT trial data, scheduled for presentation at the American College of Cardiology on March 31, 2025, which is expected to be a pivotal moment for the PCSK9 inhibitor market.

Strategic Acquisitions and Collaborations

AstraZeneca has been actively bolstering its pipeline through strategic acquisitions. In March, the company announced the acquisition of EsoBiotec for a potential total of $1 billion. This acquisition aims to strengthen AstraZeneca's capabilities in cell therapy, with a particular focus on applications in cancer and autoimmune diseases. This move is aligned with AstraZeneca's broader strategic objective of expanding its oncology portfolio through the incorporation of innovative technologies.

Further demonstrating its commitment to growth and innovation, AstraZeneca entered into a significant research collaboration with China's CSPC Pharmaceutical Group in June 2025. The collaboration is valued at over $5 billion and focuses on the early-stage development of treatments for chronic diseases, leveraging CSPC's AI-driven research capabilities. Such collaborations underscore AstraZeneca's commitment to global expansion and innovation.

AstraZeneca’s proactive approach to pipeline development, successful clinical trial outcomes, strategic acquisitions, and favourable analyst outlooks have collectively contributed to the recent upward movement in its share price, now 28.88% higher YTD, and impressively outperforming the broader FTSE 100 (+17%).