Analysts at Deutsche Bank have raised their AstraZeneca PLC (LSE:AZN) price target to £120 from £117 after the drugmaker’s third-quarter results, leaving its valuation nearly 14% below the last close of £139.30.
The bank held to a ‘hold’ rating, however, questioning how much next year’s trial results could add to already upbeat investor expectations.
AstraZeneca shares joined a broader rally in pharmaceutical stocks despite a quarter the broker described as mixed.
Deutsche Bank attributed much of the sector’s advance to investors shifting money into drugmakers.
Those higher valuations prompted the bank to lift its target, which it based on 15 times forecast 2027 earnings.
The broker, which upgraded AstraZeneca to ‘hold’ in September, also questioned whether the company could sustain growth through the patent expiries it faces in the early 2030s.
One nearer-term test is AVANZAR. The trial readout has moved to the first quarter of 2027, a delay the broker said may help explain why investors greeted the third-quarter figures so warmly.
