AstraZeneca PLC (LSE:AZN)'s assets beyond oncology offer significant upside potential, in the view of investment bank Jefferies.
The broker upgraded the pharmaceuticals giant to 'buy' from 'hold' and increased its price target to 13,000p from 10,500p.
“We flag R&D assets outside oncology are being largely ignored, offering significant upside optionality, with our deep-dives underpinning up to +8% above consensus sales & EPS,” it said.
Jefferies highlighted the asthma drug Airsupra, where it sees near $1 billion more sales, while it also has taken a look into what it calls “blockbuster opportunities” for tozorakimab, Farxiga follow-ons and eplontersen.
Tozorakimab in phase III for acute respiratory failure and smokers' cough seems underappreciated, with Jefferies estimating peak sales of $4.5 billion, while it is “optimistic Farxiga combos can at least sustain this $8 billion franchise”.
The bank estimates a $3.5 billion peak for eplontersen for rare cardiac disorder.