Barclays sees "compelling" entry point at AstraZeneca after recent falls
[Tada Images - www.stock.adobe.com]
(Sharecast News) - Barclays has kept an 'overweight' position on AstraZeneca (AZN) despite the biopharma group's disappointing annual results last week, saying that the stock's recent underperformance provides an attractive entry point for investors.
Shares in AstraZeneca dropped on Thursday after fourth-quarter core earnings per share rose by just 7% year-on-year to $1.45, which was a 3% miss against consensus forecasts.
The stock, down nearly 2% on Monday, has now fallen 8.8% since the results were released and now stand at a 52-week low of 9,564.7p.
"The last time AZN moved that much on a print (3Q21), the magnitude of the EPS miss/subsequent downgrades was far greater," Barclays said.
As a result of the fourth-quarter numbers, Barclays trimmed its 2024 EPS forecasts by 2%. However, the bank still sees significant upside with a price target of 12,500p.
"We think this presents a compelling entry point for a best-in-class company," Barclays said.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.