Shares of British pharmaceutical giant AstraZeneca (AZN) jumped to their highest level in a year during early trading on Tuesday, surpassing the peak reached at the close of the previous day.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
On Monday, the stock rose more than 3% to reach $87.48 per share and extended the gains marginally during Tuesday’s pre-market to reach $87.69. The new high propelled AstraZeneca’s market value on Nasdaq to about $263.33 billion, with an enterprise value of $264.05 billion.
Similarly, back at home in the U.K., AstraZeneca’s stock breached its September 2024 level to reach a new record high. The shares rose as high as £134.6 per share (about $254) on Tuesday morning, reinforcing the pharma giant’s position as the largest company listed on the London Stock Exchange.
AstraZeneca Beats Wall Street
The new highs come as AstraZeneca’s third-quarter Fiscal Year 2025 results beat Wall Street’s estimates, with the company raising its guidance for the full fiscal year.
During the quarter, the Cambridge-based company’s revenue rose 12% from a year ago to $15.19 billion, beating a consensus forecast of $14.87 billion. Furthermore, the company grew its earnings per share by 14% to $1.19, comfortably surpassing analysts’ expectations of $1.14.
AstraZeneca Makes Pivot to U.S.
Meanwhile, the record high in the U.S. follows AstraZeneca’s recent win of its shareholders’ vote to list directly in New York, marking a strategic shift towards its largest market while remaining dual-listed.
However, while AstraZeneca’s recent drug discount deal with the Trump administration is expected to help support its growth in the U.S., the British company expects its core gross margin to drop slightly due to the impact of Medicare Part D reforms in the U.S. and increased profit sharing from its partnered products.
Under the U.S. government’s health reforms, the annual out-of-pocket maximum for drugs covered by the Medicare health insurance program was limited to $2,000, among other changes. The new rules came into force in January.
Is AstraZeneca a Buy or Sell?
On Wall Street, AstraZeneca’s shares currently have a Strong Buy consensus rating, as seen on TipRanks. This is based on five Buy recommendations assigned by analysts over the past three months. Moreover, the average AZN price target of $94.50 indicates about 8% upside from the current trading level.
