Morgan Stanley analyst Sarita Kapila has maintained their bullish stance on AZN stock, giving a Buy rating today.
Sarita Kapila has given her Buy rating due to a combination of factors related to AstraZeneca’s promising pipeline and market potential. The recent positive results from Mineralys Therapeutics’ trial for lorundrostat, a competitor drug, have favorable implications for AstraZeneca’s own hypertension treatment, baxdrostat. This development reduces the perceived risk associated with baxdrostat and highlights its potential for significant market success.
Kapila believes that the pivotal hypertension data could be a crucial step towards unlocking a substantial revenue opportunity for AstraZeneca, estimated at around $6.5 billion in peak sales. This includes potential sales from both hypertension and chronic kidney disease treatments. Despite the current market consensus valuing these opportunities at a lower figure, Kapila sees considerable upside potential, especially when considering the combination potential with Farxiga in chronic kidney disease. Overall, the positive read-across from competitor data and the underappreciated potential of baxdrostat support the Buy rating for AstraZeneca’s stock.
According to TipRanks, Kapila is a 2-star analyst with an average return of 1.0% and a 57.14% success rate.
In another report released today, UBS also maintained a Buy rating on the stock with a £142.00 price target.