AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) drug pipeline is splitting opinion among City brokers, with Citibank upgrading its price target to 17,800p whilst analysts at Deutsche Bank repeated a 'sell' rating and a 11,500p valuation.
Shares in the FTSE 100 drugmaker were down 1.1% at 12,744p on Tuesday afternoon.
Citi described Astra's second quarter as solid, and lifted its EPS forecasts by 1%-3%, and noted that 19 key Phase III clinical trial readouts are expected in 2027.
The American bank highlighted in a note to clients that AstraZeneca’s pipeline depth should help it absorb setbacks such as the Wainua trial failure, adding that the subsequent share-price reaction appeared "overdone".
It sees positive risk-reward ahead of the SERENA-4 and AVANZAR oncology readouts in the second half.
Deutsche is more cautious, describing the quarterly update and pipeline news as broadly neutral, whilst maintaining its negative rating.
AstraZeneca saw its shares climb on Monday after the drugmaker reported better second-quarter earnings than expected as growth in oncology and rare diseases helped offset weaker sales elsewhere.
Total revenue increased 9% to $30.7 billion in the first half of 2026, or 6% at constant exchange rates. Core earnings per share rose 12% to $5.21, while reported earnings increased 4% to $3.60.
Core earnings per share increased 21% to $2.63 in the second quarter, ahead of the average City analyst forecast of $2.48. Revenue rose 6% to $15.4 billion, narrowly below the $15.4 billion forecast. First-half growth was led by double-digit gains in oncology and rare disease, offsetting the loss of US exclusivity for diabetes treatment Farxiga and pressure from China’s volume-based procurement programme. AstraZeneca increased its interim dividend by three cents to $1.06 per share (79.5p).
For the full year, revenue is still expected to grow by a mid-to-high single-digit percentage, with core earnings per share rising by a low double-digit percentage.
Chief executive Pascal Soriot said the company was disappointed by the failure of the key CARDIO-TTRansform trial earlier this month, which has seen more than 11% of the group's valuation shaved off, but across the group is "on track to deliver our $80 billion total revenue ambition, which assumes successes and setbacks".
He noted that the first half saw positive results from six other key Phase III trial programmes, with first approvals secured in eight major markets.
