AstraZeneca has been tipped to become Britain’s first £200billion company.
The pharma giant has ‘much business momentum and news upcoming’ alongside a ‘broad and deep’ pipeline of drugs, according to broker TD Cowen.
Analysts at the firm highlighted what they believe could be three big developments for AstraZeneca this year.
This includes US and EU approval for the antibody drug Datopotamab deruxtecan it is developing with Japan’s Daiichi Sankyo to treat patients with lung and breast cancer.
New drugs: Analysts at AstraZeneca highlighted what they believe could be three big developments for AstraZeneca this year
AstraZeneca is also waiting for fresh data on studies relating to key drugs such as Imfinzi, Lynparza and Tagrisso.
And the company could reveal its progress on its early-stage diabetes and obesity treatments at the Obesity Week conference in San Antonio, Texas, in November.
As a result, TD Cowen increased its sales forecast for each year through to the end of the decade and now expects AstraZeneca to make £61billion of revenue in 2030.
That is slightly below the company’s own target of £63billion, though the broker said this suggests ‘room for upside’.
It also raised the pharma firm’s target price to 14860p. At that level, the company would be valued at £230billion.
Shares rose 0.6 per cent, or 80p, to 12780p, giving it a value of close to £198billion. It means AstraZeneca is close to becoming the first ever company in the UK to be valued at £200billion.
Shell (up 0.8 per cent, or 23p, to 2799p), HSBC (up 0.2 per cent, or 1.4p, to 643.9p) and Unilever (down 0.3 per cent, or 16p, to 4714p) are the only other blue-chip companies worth more than £100billion.
Stock Watch – Celadon Pharmaceuticals
A Cannabis-based medicine business has been hit by funding delays.
Celadon Pharmaceuticals said it is ‘tightly’ managing its cash position of £48,000.
The AIM-listed firm has faced delays in receiving funds from an investor who recently bought £1million of new shares alongside its request to be paid £1million out of its £7million loan agreement with a lender.
Shares, which floated at 165p in March 2022, crashed 45.8 per cent, or 24.1p, to 28.5p.
The FTSE 100 rose 0.5 per cent, or 42.15 points, to 8210.25 and the FTSE 250 gained 0.3 per cent, or 52.01 points, to 20677.19.
Oil rose above $80 a barrel as tensions remained escalated in the Middle East.
A broker downgrade knocked JD Sports. Analysts at Deutsche Bank Research told their clients to sell shares in the self-styled ‘King of Trainers’, citing cash flow concerns and weak customer spending fuelling continued promotional discounts.
Shares dropped 4.1 per cent, or 5.1p, to 120.35p. Auction Technology was another faller after analysts at Peel Hunt lowered their annual sales forecast.
The broker cut its revenue estimate by 2 per cent to £136million for the year to the end of September due to concerns that prices will remain volatile in the second half.
Shares in Auction Technology, whose eight digital marketplaces allow traders to buy and sell items including furniture, stamps and coins, fell 7 per cent, or 31.5p, to 422p.
There was better news for drinks giant Diageo. Analysts at RBC lifted their rating on the owner of Johnnie Walker, Guinness and Smirnoff from ‘underperform’ to ‘sector perform’.
The upgrade came even though the firm has been hit by a slowdown in business across Latin America and customers shunning expensive drinks. Shares edged higher 1 per cent, or 25p, to 2451.5p.
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