AstraZeneca PLC (LSE: AZN)

AstraZeneca PLC (LSE: AZN) is an FTSE 100 listed science-led biopharmaceutical company, which focuses on the development, commercialization, and discovery of prescription medicines. This Report covers the Key Recommendation Rationale, and Conclusion on the stock.

Key Recommendation Rationale – Sell at GBX 12,040.00

• Resistance near Current levels: AZN’s stock price has breached Resistance (R2) which was stated in the previous report on 26 June 2025 therefore, there can be a possibility of a decline from resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.
• Pressures on Key Products in CVRM and R&I Portfolios - Despite overall growth, several notable cardiovascular, renal, and immunology (CVRM and R&I) products experienced flat or declining sales, which could indicate pressure in these therapeutic areas. Brilinta saw a 21% CER decline in H1 and a 38% CER drop in Q2, primarily due to generic competition. Pulmicort and roxadustat also faced double-digit declines in Emerging Markets and China.
• Limited Growth in Rare Disease and Established Markets - While the Oncology and Emerging Markets segments posted strong performance, the Rare Disease division showed only modest growth of 3% CER in H1 and 7% in Q2, despite the company’s significant investment in high-value therapies. Similarly, in Established Rest of World (RoW) markets, revenue growth was muted.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

AZN Daily Technical Chart, Source - Refinitiv

Conclusion

AZN is expected to trade at a discount, considering cardiovascular, renal, and immunology (CVRM and R&I) products experienced flat or declining sales, and fears of global slowdown. For conducting the valuation, the following peers have been considered - Hikma Pharmaceuticals PLC (LSE: HIK), GSK PLC (LSE: GSK) and others.

Given its current trading levels, Limited Growth in Rare Disease and Established Markets, recent rally in the share price, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current Market Price of GBX 12,040.00 as of 26 August 2025 at 10:00 AM GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 26 August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.