UBS and Citi both maintain 'buy' ratings on the Anglo-Swedish drugmaker ahead of its first-quarter results, with a rich pipeline of clinical catalysts adding to the investment case.
AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) reports first-quarter 2026 results on 29 April, with UBS flagging several moving parts that investors will watch closely when the numbers land.
In a preview note, UBS highlights continued strong momentum expected from key cancer drugs Imfinzi, Tagrisso and Calquence, while cautioning that Farxiga, a treatment for type 2 diabetes and heart failure, is likely to show some impact from wholesaler destocking in the US ahead of its loss of exclusivity (LOE), the point at which generic competitors can enter the market.
UBS also flags that three AZ drugs faced volume-based procurement (VBP) in China during the quarter, a government-mandated pricing process under which the company chose not to offer price concessions and, as a result, was excluded from the programme, leaving Forxiga, Lynparza and roxadustat facing mandatory price cuts of 20%, 30% and 30%, respectively.
On the cost side, UBS anticipates higher selling and administrative expenses in the first quarter as AstraZeneca prepares for launches of camizestrant and baxdrostat, two drugs in late-stage development targeting breast cancer and cardiovascular disease, respectively.
UBS maintains its 'buy' rating and 12-month price target of 17,600p, implying upside of around 15% from the current price of 15,274p.
Citi is more bullish, raising its price target to £180 from £170 after updating its model for first-quarter developments, with the bank's earnings per share compound annual growth rate forecast for 2027 to 2030 rising to 15% from 13%.
Citi's upgrade reflects increased confidence in camizestrant following a rival drug's clinical failure, which Citi says expands the addressable market, and a significantly higher probability of success assigned to tozorakimab, a drug targeting lung disease, following positive headline trial data.
It also maintains its 'buy' rating on AZ.