Stock price when the opinion was issued
Very strong R&D pipeline, with new products expected. Off recent share price highs, which is a good time to buy. Margins very strong on new products. Expecting earnings to rise in the immediate future. Low double digit EPS @ 16x earnings a very strong value proposition. Will continue to hold for the long term.
They 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.
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)In 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.
We 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)