Barclays sees "compelling" entry point at AstraZeneca after recent falls
AstraZeneca
10,256.00p
17:15 20/12/24
Barclays has kept an 'overweight' position on AstraZeneca despite the biopharma group's disappointing annual results last week, saying that the stock's recent underperformance provides an attractive entry point for investors.
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Shares in AstraZeneca dropped on Thursday after fourth-quarter core earnings per share rose by just 7% year-on-year to $1.45, which was a 3% miss against consensus forecasts.
The stock, down nearly 2% on Monday, has now fallen 8.8% since the results were released and now stand at a 52-week low of 9,564.7p.
"The last time AZN moved that much on a print (3Q21), the magnitude of the EPS miss/subsequent downgrades was far greater," Barclays said.
As a result of the fourth-quarter numbers, Barclays trimmed its 2024 EPS forecasts by 2%. However, the bank still sees significant upside with a price target of 12,500p.
"We think this presents a compelling entry point for a best-in-class company," Barclays said.