In This Article:
AstraZeneca recently reported a 1.9% decline in its share price over the last week. This movement coincides with the broader market's downturn, which saw a 1.1% drop amid ongoing concerns about international trade, particularly following U.S. tariff policies. Amid these market pressures, the company's collaboration with Daiichi Sankyo was highlighted by the announcement of successful phase 3 trial results for ENHERTU, which positively impacts the oncology sector. Although AstraZeneca's price move was similar to the general market trend, the positive news from its joint venture likely cushioned some broader market downturn effects.
You should learn about the 2 possible red flags we've spotted with AstraZeneca.
The recent announcement of successful phase 3 trial results for ENHERTU in collaboration with Daiichi Sankyo has the potential to positively influence AstraZeneca's future revenue and earnings forecasts. Such advancements in oncology could bolster the outlook for the sector. Despite a short-term 1.9% decline in share price, AstraZeneca has achieved a total shareholder return of 37.10% over the past five years, indicating strong longer-term performance. This historical performance underscores the resilience and growth potential of the company's broader portfolio.
Compared to the past year's UK Pharmaceuticals industry return of negative 7%, AstraZeneca underperformed. This performance context is important as investors assess the company's trajectory in a challenging market. However, the positive trial results provide a counterbalance to immediate price pressures, suggesting potential future gains. Analysts' consensus price target is £135.87, about 24.5% higher than the current share price of £102.54 as of today, April 21, 2025. The news of ENHERTU's phase 3 results may support achieving these targets, as long as the company effectively capitalizes on expected advancements by 2028 and addresses potential risks in key markets. Such achievements would align with analysts' growth assumptions, potentially enhancing AstraZeneca’s chances of meeting market expectations and driving long-term shareholder value.
Evaluate AstraZeneca's prospects by accessing our earnings growth report.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.