Double-digit earnings outlook and strong trial momentum support top pick status
AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) remains a top pick at Citi following full-year results and 2026 guidance that the bank described as “reassuring”, with a reiterated target price of £170 and unchanged earnings forecasts.
Management confirmed expectations for low double-digit earnings growth in 2026, aligning with consensus, while the medium single- to high single-digit revenue outlook was ahead of market forecasts.
Citi continues to forecast AstraZeneca exceeding its $80 billion revenue target for 2030, estimating $82 billion.
Although fourth-quarter operating income came in 8% below consensus, Citi attributed the shortfall to a one-off royalty buyout. Management’s reaffirmation of its mid-30s margin target helped ease concerns.
The pipeline remains the strongest in the sector, with more than 20 phase III readouts expected in 2026.
Key milestones include tozorakimab for COPD (Q1), efzofitimod for hypophosphatasia (Q2), Wainua in ATTR-CM and camizestrant in breast cancer (Q3), and datopotamab in lung cancer in the second half.
AZ also has five new phase III trial launches planned, including elecglipron, an oral GLP-1 therapy.
In afternoon trading, the shares were up 1.2% at 14,340p.