AstraZeneca PLC (LSE:AZN) shares have caught the attention of UBS, which reiterated its 'buy' rating and raised its price target to 14,200p, implying over 27% upside from the current level, after a solid set of second-quarter results.
The drugmaker beat the Swiss Bank's estimates on both sales and operating profit, helped by stronger-than-expected growth in US oncology and a rebound in its rare disease division.
While research and development spending was up 9% to accelerate progress in its drug pipeline, UBS noted this was offset by tight cost control elsewhere.
UBS raised its forecasts for AstraZeneca, lifting 2025 revenue estimates by 1.1% and core earnings by 1.6%. Looking further out, mid-term sales and earnings forecasts are also up, reflecting the impact of new drug launches and continued cost discipline.
One area to watch is baxdrostat, a potential new treatment for high blood pressure, with important clinical trial data due on 30 August.
The AVANZAR lung cancer study readout has been delayed to the first half of 2026, but UBS does not see this affecting AstraZeneca’s long-term growth targets.
The bank also flagged that consensus may be underestimating the sales potential of Imfinzi in new indications. With multiple growth drivers and a well-managed cost base, UBS sees further upside ahead.
The shares were up 54p at 11,212p.