AstraZeneca stock price rises as pharmaceutical group announces 2030 sales target By Investing.com

Investing.com — UK-listed AstraZeneca (LON:) shares rose in morning trading on Tuesday after the pharmaceutical giant announced new profit targets by 2030.

AstraZeneca said in a statement ahead of an investor event touting a new “era of growth” that it expects total sales to reach $80 billion by the beginning of the next decade. In 2023, the company reported revenue of $45.8 billion.

The company said it plans to achieve this goal through “significant” expansion of its existing oncology, biologics and rare disease portfolio, and through the launch of 20 new drugs expected before the end of the current decade.

“The breadth of our portfolio, together with our continued investments in innovation, supports continued growth after 10 years,” CEO Pascal Soriot said in a statement.

AstraZeneca also aims to deliver adjusted operating margins in the mid-30% range after 2026, citing its strategic commitment to research and development and focus on productivity. Analysts at Bernstein said the outlook assumes core earnings before interest and tax margins of 35-37% by 2030.

Analysts noted that the Bloomberg consensus estimate is for 2030 total sales and core earnings of $67 billion and a 40% margin, respectively.

Bernstein analysts said, “Considering (AstraZeneca)’s excellent performance since 2017, we believe its 2030 sales guidance will be well-received by the investment community.”

“However, given that the consensus margin forecast of 40% for 2030 is well above the ‘mid-30s’ range that (AstraZeneca) is currently targeting for 2026 and beyond, there is significant concern about the potential trade-off between growth today and growth. “I suspect there will be some debate.”