AstraZeneca PLC’s (LON:AZN) target price was upped to 8,870p from 8,810p by Liberum.
Analysts retained the ‘buy’ recommendation as the pharma giant is expected to be “a long-term outperformer”.
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The FTSE 100-listed firm “is entering a period of robust sales growth”, mostly driven by the oncology segment, where five recently launched drugs will be supported by a pipeline of 25 new candidates, most of which are currently at the early stage.
The franchise is expected to grow sales to US$19.1bn from last year’s US$8.6bn by 2025, boosting revenues and margins given the speciality nature of the products.
“Astra’s accelerating product sales should allow the operating margin to improve from its current subdued level back towards a margin more aligned with peers,” analysts commented.
The broker said AstraZeneca is currently “overspending” on sales and marketing while drugs are being launched, but the pressure will ease once they become established.
Shares dipped 1% to 7,060p on Monday at noon.