What Analysts Think about AstraZeneca and Peers in July



Operational performance

AstraZeneca (AZN) is expected to incur research and development expenses of $1.26 billion in Q2 2018 as compared with $1.28 billion in Q2 2017, a decrease of 1.56%. The company’s total operating expenses are expected to increase by 27.16% from $2.62 billion in Q2 2017 to $3.34 billion in Q2 2018. AstraZeneca is expected to report net income per share of $0.04 in Q2 2018 as compared with $0.19 in Q2 2017.

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Analysts’ recommendations

Four of the total six analysts covering AstraZeneca in July 2018 have given it a “buy” or higher rating. Two analysts have given AstraZeneca a “hold” rating. The mean rating for the stock is 1.83 with a target price of $39.09, implying an upside potential of 5.6% over AstraZeneca’s closing price of $37.03 on July 19.

Peers Celgene (CELG), Gilead Sciences (GILD), and AbbVie (ABBV) have mean ratings from analysts of 2.25, 2.07, and 2.41, respectively, and a target price of $112.54, $86, and $113.05, respectively.

Stock performance

From $35 levels at the beginning of 2018, AstraZeneca stock trended lower and touched a low of $32.69 on March 1. Since then, it has trended higher to its current $37 levels. AstraZeneca is currently trading at a forward price-to-earnings multiple of 19.49x. AstraZeneca’s enterprise value is $105.11 billion, and its enterprise-value-to-revenue ratio is 4.73x. Its price-to-sales ratio is 4.25, and its price-to-book ratio is 7.26. The company has generated a return on assets of 2.84% and a return on equity of 18.21%.


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