Citi has raised its target price for AstraZeneca, the FTSE 100 drugmaker, to £189 from £186, saying third-quarter results eased concerns about long-term growth.
The bank kept its buy rating and said the shares could deliver a total return of about 50%, including dividends.
Analysts said the stock was undervalued at 17 times forecast 2027 earnings, given expected annual earnings growth of 16% between 2027 and 2030.
They said investors had focused on recent setbacks, including trial failures for Wainua and the SERENA-4 study.
AstraZeneca has had 12 successful late-stage trial results so far this year, with combined potential peak annual sales of more than $10 billion, according to Citi.
Late-stage results due in 2027 could be worth more than $20 billion in combined peak sales.
The company expects data from 12 pivotal trials of new drugs by 2030, each with potential peak sales of more than $5 billion.
Citi said this addressed a key investor worry about growth after 2030.
The bank raised its earnings forecasts for 2027 onwards by 1% to 4%, mainly because of higher expected royalties from Brinsupri, a lung disease treatment.
