AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) has been kept on a ‘buy’ rating by Citi, which pointed to a run of late-stage drug trial results in the second half of the year as the key driver for the shares.
The Wall Street bank was previewing second-quarter results from the Anglo-Swedish pharmaceuticals group, due on 27 July
Citi forecasts earnings per share of $2.41 for the quarter, a rise of 11% at constant exchange rates, though around 3% below the market consensus on higher spending. The bank expects the company to leave its full-year guidance unchanged, having pencilled in low double-digit growth in earnings per share. Attention on the results call is likely to centre on a series of phase three trial readouts expected in the second half, the final testing stage before regulatory filing.
These include studies of the heart drug Wainua, the cancer treatment Datroway and the breast cancer therapy camizestrant. Citi sees a favourable balance of risk and reward given investor caution, noting its downside valuation scenario on a trial failure sits about 15% above the current share price. Its upside scenario on positive data points to a value roughly 40% higher.