AstraZeneca PLC (LON:AZN) got its target price bumped up to 7,300p from 6,000p by UBS although the stock currently prices in more optimistic views on lung cancer treatment Tagrisso.
Analysts keep the pharma giant as a ‘sell’ as Tagrisso could reach US$8bn sales per year, but the potential US$12bn upside “is going to be tough”.
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The investment bank said that is what the current share price is factoring in.
“The stock prices in more though which given recent comments about the margin by senior management implies either double-digit billion Tagrisso sales estimates or a platform valuation that in our view does not come for free.”
The City seems to have discordant views as JP Morgan Cazenova are keeping their target price at 9,500p – which would make it by far the largest company in London, with £124bn market capitalisation.
“We have increased confidence in continued strong growth for Astra’s Oncology franchise out to the end of the decline, in particular Tagrisso and Enhertu [a gastric cancer treatment], both of which have numerous future growth drivers,” analysts commented.
The FTSE 100-listed firm announced last week fresh data on Tagrisso which experts say offer a hope for finding a cure.
The final stage of trials showed that it can reduce the risk of disease recurrence or death by 83% in non-small cell lung cancer patients, one of the best results ever seen in oncology.
Both Tagrisso and Enhertu are approved in several countries for certain types of lung cancer and stomach cancer, respectively.
Shares rose 2% to 8,750p on Thursday late morning.