AstraZeneca share move on China concerns ‘overdone,’ says BofA

BofA notes that AstraZeneca (AZN) shares are down greater than 10% in the last few days on the back of China concerns around the ongoing insurance fraud investigation, which the firm thinks “looks overdone and has largely priced China out of the stock.” China represents 13% of revenues, but the potential impact stemming from the fraud case is restricted to oncology, which the firm thinks represents about 5% of group sales, the analyst tells investors. Shares are now down year-to-date and the valuation “looks attractive” adds the firm, which maintains a Buy rating on AstraZeneca.