AstraZeneca downgraded to Hold from Buy at Jefferies

Jefferies analyst Peter Welford downgraded AstraZeneca to Hold from Buy with a price target of $70, down from $78.50. The analyst is positive on European pharma sector fundamentals but sees 2024 headwinds from a relative scarcity of big catalysts, U.S. political overhangs, and macro rotation. Novartis is still the firm’s top pick, then GSK. For AstraZeneca, Jefferies believes margin clarity may be needed for stock upside and says 2024 has fewer major pipeline catalysts. The “much needed” datopotamab deruxtecan approval is unlikely until nearer the end of the year, the analyst tells investors in a research note.