AstraZeneca PLC (LSE:AZN) was among the FTSE 100’s big fallers on Monday as debate raged on around the company’s year-end earnings late last week.
AstraZeneca found itself still reeling from what the market deemed disappointing earnings, with brokers having punished the pharmaceuticals giant over an unchanged dividend and lack of research and development newsflow.
Indeed, shares slipped a further 1.9%, adding to losses last week, after Deutsche said it would “probably keep sitting on the fence were it not for the dividend”.
According to the German bank, the signals being sent by the pharmaceutical firm through flat shareholder payments were “highly negative” given “a year of lighter catalysts”.
However, come Monday, Barclays analysts appeared to be viewing AstraZeneca in a more positive light, arguing in a note that the stock now presented an opportunity.
“The last time AstraZeneca moved that much on a print, the magnitude of the earnings per share miss [and] subsequent downgrades were far greater,” the bank said.
“We think this presents a compelling entry point for a best-in-class company.”
Barclays reiterated an ‘overweight’ rating for the firm as a result, alongside offering a share price target of 12,500p - a prospective rise of 28% on Friday’s close.
UBS brokers remained less optimistic though, highlighting fears of accelerating costs at AstraZeneca, which prompted a repeated ‘sell’ rating and a lowered price target of 9,900p.