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(Sharecast News) - Deutsche Bank upgraded Astrazeneca from 'sell' to 'hold' on Tuesday and nudged its price target up from 11,500p to 11,700p, saying the riskreward scenario had shifted following last week's negative SERENA-4 readout and a period of underperformance against European largecap peers.
The broker noted that the stock has fallen around 3% in absolute terms since its downgrade last October and lagged the sector by roughly 10% on an FXadjusted basis.
It said part of the weakness reflected factors it had anticipated - including secondhalf event risk and patentcliff concerns - while other pressures, such as developments around Wainua and Bristol Myers, were less expected.
Deutsche Bank added that while it did not view Monday's sector bounce as fundamentally driven or likely to persist into the US midterms, Astrazeneca's valuation now looked more balanced, prompting the move to 'hold'.
Reporting by Iain Gilbert at Sharecast.com
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