AstraZeneca (LON:AZN) Stock 46% Undervalued with Fair Value Estimate of £250
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Yahoo Finance
- Intrinsic Value Assessment: AstraZeneca's fair value estimate stands at £250, while its current share price of £136 indicates a 46% undervaluation, suggesting that the market may be overly conservative in its future cash flow expectations.
- Future Cash Flow Projections: The company's free cash flow is projected to grow from $11.9 billion to $29.8 billion over the next decade, reflecting its sustained growth potential in the pharmaceutical market, which could drive a rebound in stock price.
- Discounted Cash Flow Model: Utilizing the DCF model, AstraZeneca's total equity value is assessed at $526 billion, highlighting its competitive position and investment appeal in the industry, despite facing market volatility risks.
- Market Opportunities and Risks: While AstraZeneca's annual earnings growth is expected to lag behind the UK market, its forecasted revenue growth remains above the market average, indicating promising investment opportunities for the future.
Analyst Views on AZN
Wall Street analysts forecast AZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AZN is 102.75 USD with a low forecast of 95.00 USD and a high forecast of 108.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 95.600
Low
95.00
Averages
102.75
High
108.00
Current: 95.600
Low
95.00
Averages
102.75
High
108.00
About AZN
AstraZeneca PLC is a United Kingdom-based science-led biopharmaceutical company. The Company focuses on the discovery, development, and commercialization of prescription medicines. The Company operates across therapy areas, including Oncology; Cardiovascular, Renal and Metabolism (CVRM); Respiratory and Immunology (R&I); Vaccines and Immune Therapies (V&I), and Rare Disease. In the Oncology area, its key products include Tagrisso, Imfinzi, Calquence, Lynparza, and Enhertu. The key products of CVRM area include Farxiga/Forxiga, Brilinta/Brilique, Crestor, and Lokelma. In the R&I area, the key products are Symbicort, Fasenra, Breztri/Trixeo, and Tezspire. In the V&I Therapies area, the products are Beyfortus and FluMist. The products in the Rare Disease area are Ultomiris, Soliris, Strensiq, and Koselugo. It has about 191 projects in its development pipeline, including 19 new molecular entities (NMEs) in the late-stage pipeline. The Company distributes its products in over 125 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
