Deutsche Bank has upgraded AstraZeneca PLC (LSE:AZN) from "sell" to "hold," pointing to recalibrated expectations for the company’s lung cancer drug pipeline.
Its analysts highlighted that concerns over AstraZeneca’s key lung cancer drug, dapotamab, had driven the earlier downgrade after a disappointing report at the World Conference on Lung Cancer.
The bank noted that lowered expectations for dapotamab had pressured AZ's recent performance. However, DB now believes the market has largely absorbed the impact, prompting the upgrade.
The Anglo-Swedish giant’s path toward its ambitious $80 billion revenue target by 2030 continues to hinge on its oncology drugs, including dapotamab, though competition from pharmaceutical giants like GSK and Novo Nordisk (NYSE:NVO) adds pressure.
The bank's price target for AstraZeneca remains unchanged at 10,500 pence, compared to a recent close of 10,114 pence.
In early afternoon trading, shares were up 1% to 10,208 pence, aligning with the broader market trend.