AstraZeneca (AZN) Q1 Earnings Preview - BofA Securities

BofA Securities analyst Sachin Jain reiterated a Buy rating on AstraZeneca (NASDAQ: AZN) ahead of 1Q earnings expecting product sales of $6.9bn, +10% YoY and core EPS of $1.49, both excluding any COVID vaccine contribution. Keys to the quarter include:

1) Other operating income of c$1.2bn, driven by Viela and Crestor divestments
2) Anticipated R&D spend increase c20% yoy, with one-off income re-invested
3) Continued growth of key drivers Tagrisso, Imfinzi, Lynparza, with forecasts overleaf. Some impact from Tagrisso and Lynparza NRDL inclusion expected
4) Symbicort growth impacted by strong prior year quarter
5) Growth impacted by 1Q20 stocking that aided growth by low-single digits

The analyst stated "AstraZeneca (AZN) remains a top-pick given it trades at c13.5x FY22E pro-forma EPS (in-line with EU Pharma sector), despite a better growth outlook (post deal sales and EPS 22-25E CAGRs of 9% /13%) and lots of pipeline data. Catalyst path becomes material, in our view, from mid-year and includes ALXN deal close, roxadustat Adcom July 15th, Enhertu PIII from two studies, Lynparza prostate, Imfinzi PACIFIC-2, potential Tagrisso LAURA interim, DS1062 TNBC ESMO Breast & possible PDx combination lung data 2H21, Imfinzi EMERALD, and anifrolumab approval."

For an analyst ratings summary and ratings history on AstraZeneca click here. For more ratings news on AstraZeneca click here.

Shares of AstraZeneca closed at $50.20 yesterday.

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