AstraZeneca PLC (LSE:AZN) faced a blow on Friday after Deutsche Bank analysts downgraded the pharmaceuticals giant on what they labelled a “thoroughly disappointing” end to 2023.
Analysts wrote in a note that they saw shares in AstraZeneca falling over 300p on Thursday’s closing price to 9,500p, compared to previous guidance of a rise to 11,000p.
This was coupled with a rating downgrade from ‘hold’ to ‘sell’ for AstraZeneca after the firm failed to impress with full-year results on Thursday.
“Cash flow was actually solid, but the dividend is flat,” Deutsche pointed out, adding the shareholder payment of US$2.90 was “another disappointment after a flat decade and two years of minor nudges”.
“Research and development newsflow is mostly minor,” the bank added, implying limited catalysts and scope for growth over the coming years as a result.
“We would probably keep sitting on the fence were it not for the dividend but we find the signalling highly negative and in context of a year of lighter catalysts,” Deutsche said.
Shares fell 0.35% to 9,789p.