Update shared on30 Aug 2025
Fair value Decreased 1.01%Despite ongoing pipeline progress and bullish long-term forecasts, AstraZeneca’s consensus price target was revised modestly downward to £135.55, as analysts balanced positive R&D developments against short-term revenue headwinds and market reactions.
Analyst Commentary
- Bullish analysts increased long-term revenue forecasts, citing substantial pipeline progress achieved this year.
- Positive pipeline developments are prompting a higher valuation assigned to AstraZeneca’s R&D portfolio.
- Bullish analysts believe consensus estimates underestimate the company’s growth potential, especially toward 2030.
- Recent quarterly results included a Q2 revenue miss for Wainua, which is seen as a negative for peer companies more than for AstraZeneca itself.
- Market reaction to earnings is influenced primarily by pipeline news and forward-looking revenue projections, rather than isolated product revenue misses.
What's in the News
- The U.S. government is expected to announce pharmaceutical import tariffs in the coming weeks, introducing sector-specific tariffs that could impact AstraZeneca alongside other large-cap drugmakers (Reuters, 2025-08-13).
- The Trump administration has discussed with drugmakers strategies to raise drug prices internationally, particularly in Europe, aiming to lower U.S. drug costs through “most favored nation” pricing, potentially benefiting AstraZeneca’s international pricing negotiations (Reuters, 2025-08-08).
- Federal officials are considering imposing a new 1%-5% fee on patent holders, a major patent system overhaul that would significantly affect pharma companies like AstraZeneca due to their reliance on patent protections (Wall Street Journal, 2025-07-28).
- President Trump indicated he may impose tariffs on pharmaceuticals by August 1, with an initial lower rate for one year before shifting to a higher rate, which could increase costs for AstraZeneca’s U.S. business (Bloomberg, 2025-07-16).
- The administration is exploring making pharma advertising more difficult and expensive, including requiring detailed side effect disclosures in ads and possibly removing tax deductions for direct-to-consumer advertising, impacting AstraZeneca’s marketing strategies (Bloomberg, 2025-06-17).
Valuation Changes
Summary of Valuation Changes for AstraZeneca
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £137.89 to £135.55.
- The Future P/E for AstraZeneca has significantly fallen from 25.18x to 18.46x.
- The Net Profit Margin for AstraZeneca remained effectively unchanged, moving only marginally from 20.64% to 20.62%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.