Source: Sharecast
Berenberg increased its 2030 revenue forecast for AstraZeneca by roughly 3% to $79.0bn, ahead of consensus and steadily approaching the company's ambition of $80.0bn.
The German bank also highlighted that AstraZeneca has seen "substantial pipeline progress" already this year and, in its view, shares should factor in a larger pipeline valuation.
"AstraZeneca is set to deliver industry-leading sales and EPS growth from its innovative, rejuvenated portfolio. As profitability improves, so does the cash position. With the dividend covered, management has more cash at its disposal to invest in R&D," said Berenberg.
"Our return on R&D investment (RORI) analysis indicates superior pipeline returns, ahead of the cost of capital and the sector average. The next 12-18 months will bring significant pipeline newsflow, which could trigger upward revisions to forecasts."
Berenberg added that AstraZeneca trades on a 2026 price-to-earnings ratio of 13.4x versus an EU sector average of 12.5x and an enterprise value/net present value ratio of 0.89x compared to an average of 0.84x.
Reporting by Iain Gilbert at Sharecast.com