AZN — AstraZeneca PLC
Price when we picked it (Aug 31, 2026)
$162.70
Target: $212.54 (+30.6%)
P/E Ratio
24.3
P/E Forward
14.3
Dividend
2%
Market Cap
$251.8B
EPS
$6.69
Consensus
Strong Buy
What they do
AstraZeneca (Cambridge, UK; CEO Pascal Soriot; ~95,100 employees) is one of the world's largest pharmaceutical companies, with oncology at its heart (~46% of revenue): Tagrisso (lung), Enhertu and Datroway (breast, with Daiichi Sankyo), Imfinzi (immunotherapy), Lynparza and Calquence. Alongside: the cardiometabolic business (Farxiga — now facing US generics), respiratory/immunology (Symbicort, Fasenra, Tezspire) and rare diseases via Alexion (Ultomiris, Soliris).
2026 brought two structural changes:
- it stopped being an ADR — on February 2 its ordinary shares began trading directly on the NYSE (ticker AZN), alongside London and Stockholm;
- it struck a deal with the US government on 'most-favored-nation' Medicaid pricing in exchange for 3 years without pharma tariffs, and is investing $50 billion in the US (including a $4.5 billion Virginia plant).
The pipeline is among the industry's fullest: ~25 Phase III readouts over the next 18 months; in 2026 it already scored the first approvals of camizestrant (breast) and baxdrostat/Baxfendy (hypertension), Enhertu in early breast cancer and Datroway in triple-negative.
Why we like it
Three reasons.
- GROWING WITH A PUBLIC 2030 TARGET: first half 2026 with revenue $30.67 billion (+9%), oncology +18%, rare diseases +13% and core EPS $5.21 (+12%) — absorbing the Farxiga generic hit; 2026 guidance reaffirmed and the $80 billion revenue ambition for 2030 (a third more than today) intact.
- A PIPELINE AS A PERMANENT CATALYST: ~25 Phase IIIs reading out over 18 months — camizestrant (SERENA-4 in H2), baxdrostat, amyloidosis — with 30 major-market approvals in the first half alone; every positive readout is a prize today's price doesn't include.
- CHEAP FOR ITS QUALITY: at $162.70 it trades at 14.3x expected earnings — half the multiple of premium pharma — with a Strong Buy consensus and a ~$212 average target (+31%). The direct NYSE listing (Feb 2026) broadens its investor base, it pays ~2% with a progressive dividend (2026 interim already raised to $1.06), and even the Bristol Myers mega-merger reports acted as a value floor.
Key Risk
#1: patent cliffs. Farxiga (~$7.7 billion in sales) already has an approved US generic (April 2026) and was a declared drag on the half; several assets lose exclusivity toward 2030 — the $80 billion target depends on the pipeline replacing them. Others:
- China (~11% of revenue): volume-based procurement pressures prices, cited in the results;
- US pricing policy: the October 2025 deal (most-favored-nation Medicaid pricing + TrumpRx) bought 3 years of tariff peace, but the IRA still sets prices;
- binary readouts: ~25 Phase IIIs in 18 months cuts both ways — 2026 already saw Wainua fail in cardio and volrustomig discontinued in lung;
- strategy risk: the reported Bristol Myers merger (~$400 billion combined) drew investor pushback — a real mega-merger would be a huge bet;
- Soriot succession: the company denied a search, but he's been in the job 14 years.
This is educational and informational content, not financial advice. Always consult a qualified financial advisor before making investment decisions.
Vectorial Data picked AZN on Aug 31, 2026 at $162.70.
Full Research
What it does. AstraZeneca (NYSE/LSE/Stockholm: AZN; Cambridge Biomedical Campus, UK; CEO Pascal Soriot; ~95,100 employees) is a global pharma anchored in oncology (~46% of revenue: Tagrisso, Enhertu and Datroway with Daiichi Sankyo, Imfinzi, Lynparza, Calquence), plus BioPharmaceuticals (cardiometabolic: Farxiga; respiratory/immunology: Symbicort, Fasenra, Tezspire, Breztri) and Rare Diseases via Alexion (Ultomiris, Soliris). Share structure change: on January 30, 2026 the ADR program ended (1 ADR = 0.5 share) and since February 2 the ordinary shares trade directly on the NYSE — 'one global listing'. Per-share figures are per ordinary share.
Results (H1 2026, July 27). Revenue $30.672 billion (+9% actual / +6% at constant currency); core EPS $5.21 (+12%); reported $3.60 (+4%). Oncology $14.124 billion (+18%); Rare Diseases $4.911 billion (+13%) — offsetting Farxiga's US exclusivity loss and China's volume-based procurement. 2026 guidance reconfirmed: revenue up mid-to-high single digits; core EPS up low double digits (constant currency). The $80 billion revenue ambition for 2030 reaffirmed. 2025 base: $58.7 billion (+9%), core EPS $9.16 (+11%); China $6.65 billion (~11%).
2026 pipeline. ~25 Phase III readouts over 18 months. This year's wins: first approvals of camizestrant (breast) and Baxfendy/baxdrostat (hypertension); Enhertu approved in the US in two early HER2+ breast indications; Datroway approved in first-line metastatic triple-negative; Imfinzi new bladder indication (POTOMAC); 30 major-market approvals in the half; Zegfrovy license (Dizal). Next: SERENA-4 (camizestrant) in H2; anselamimab (amyloidosis) Phase III positive. Setbacks: Wainua missed CARDIO-TTRansform; volrustomig discontinued in eVOLVE-Lung02.
Dividend. Progressive policy (maintain or grow every year), two payments a year: 2026 interim raised to $1.06 (ex-div August 7, paid September 8); the 2025 second interim was $2.17 (March 2026). Trailing ~$3.23 per share ≈ 2.0% at the current price.
US and policy. October 2025 deal with the Trump administration: 'most-favored-nation' Medicaid pricing and discounted sales via TrumpRx from January 2026, in exchange for 3 years without the threatened 100% pharma tariffs. $50 billion US investment ($4.5 billion Virginia plant); $15 billion planned in China by 2030.
Stock. $162.70 at the open (August 31, 2026); market cap ~$251.8 billion; 52-week range $146.10–$212.71 (pre-February prices reflect the 2:1 ADR conversion); P/E ~24.3x TTM / 14.3x forward. Strong Buy consensus; average targets ~$206–224 (+27-38%). August: fell ~7% on the FT report of early merger talks with Bristol Myers Squibb (~$400 billion combined; never confirmed) and rebounded ~6% when the reports were dismissed.
Risks. (1) Patents: Farxiga generic approved in the US (April 2026), a declared drag; multiple exclusivities expire toward 2030; Tagrisso protected in the US to Jul-2032. (2) China ~11% of revenue with volume-procurement price pressure. (3) US pricing policy (MFN/TrumpRx/IRA). (4) ~25 binary Phase III readouts (two failures already in 2026). (5) Mega-M&A risk (investor pushback on the BMS idea). (6) Soriot succession (14 years in the job; search reported and denied).
This is not financial advice. Consult a certified financial advisor.
The author may hold positions in the securities discussed.
Past performance does not guarantee future results.