Opinions Paul MacDonald
Astrazeneca P L CAZNTOP PICKMay 10, 2017
Paul MacDonaldStock price when the opinion was issued
As of Jun 08, 2026. Market Open.
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Very advanced pipeline will add significant revenue. Good story still intact.
Darren Sissons
Has broad platform of diseases they treat. Trades around 15x PE and pays a 2% dividend yield. Shares are still snapping back from some news in China last year, so there's more room to recover.
Jim LebenthalAbbvie and AZN are two good healthcare stocks, a sector in which you must be picky because of weakness. Both trade around 15x and pay around a 3% dividend yield.
Joe TerranovaIn oncology, but he isn't deeply familiar with its product pipeline. He can say, with quite a bit of confidence, that they've been improving on fundamentals since around 2017-18. ROC marched up from 6% to 13%, very consistent. Pretty good valuation at 13x EV/EBITDA. Well run.
He doesn't get too hung up on a weak couple of years. If the fundamentals are there, you just have to wait it out.
Likes the pipeline. A number of candidates to seek approval in the next couple of years, which will be a catalyst for earnings going forward. Fairly productive R&D engine. Also growth through tuck-in acquisitions. Relatively attractively priced given current growth outlook. Going to be second-fastest growing drug stock in Europe behind NVO. Yield is 3.06%.
(Analysts’ price target is $85.38)Darren SissonsBig breakthroughs in cancer. One drug failed recently. We're in the midst of a malaise of selling and going to cash. Great story.
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Premium contentOur PAST TOP PICK with AZN has triggered its stop at $71. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 1%, when combined with our previous guidance.
Premium contentThey rallied last summer, then faced headwinds last fall when a cancer drug failed to perform in trials and there was an investigation in their large Chinese business. Both problems are clearing now. They have a drug pipeline that should become a great growth story. Trades at 15x PE.
Jamie Murray Premium contentWe reiterate AZN as a TOP PICK. Recently reported earnings indicated a 19% increase in earnings and revenues. Management announced positive development on 9 new drugs worth $5 billion in future revenues and a plan to invest over $800 million in Ontario creating 700 jobs. The shares trade at 18x earnings and support a 30% ROE. We recommend trailing up the stop (from $52) to $64, looking to achieve $88 -- upside potential of 21%. Yield 1.4%
(Analysts’ price target is $88.24)
A diversified pharmaceutical, sort of shifting their business away from traditional fields. They are in decline right now on revenues. You want to be holding this along with Merck and Bristol-Myers. They have a very key study coming out, taking an immuno oncology drug and combining it with another immuno oncology drug. That is going to be a very key catalyst. Dividend yield of 4.5%. (Analysts’ price target is $34.)