AstraZeneca PLC ADR (AZN:NSD) Analysts rate as a Strong Buy, $70 target

STA Research
by: STA Research

Based on the AstraZeneca PLC ADR stock forecasts from 8 analysts, the average analyst target price for AstraZeneca PLC ADR is USD 70.00 over the next 12 months. AstraZeneca PLC ADR’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of AstraZeneca PLC ADR is Neutral, which is based on 7 positive signals and 8 negative signals. At the last closing, AstraZeneca PLC ADR’s stock price was USD 59.26. AstraZeneca PLC ADR’s stock price has changed by -6.32% over the past week, -3.88% over the past month and +0.71% over the last year.

Recently, the investment bank, UBS Securities downgraded the stock to a Neutral rating from a Buy rating.

A biopharmaceutical company known as AstraZeneca PLC focuses on the research, development, manufacturing, and distribution of prescription medications. AstraZeneca PLC was formerly known as Zeneca Group PLC; however, in April 1999, the company officially changed its name to AstraZeneca PLC. AstraZeneca PLC is a publicly traded company that was established in 1992 and has its headquarters in Cambridge, which is located in the United Kingdom.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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