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Brokers split on AstraZeneca merger talk as shares recover some ground
['Tue', 'August At Pm Bst', 'Min Read']
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Brokers split on AstraZeneca merger talk as shares recover some ground Proactive uses images sourced from ShutterstockCiti has told clients that a large chunk of deal risk is already in AstraZeneca PLC's (LSE:AZN, NASDAQ:AZN) share price after Monday's sharp fall, while Deutsche Bank sees clear parallels with the drugmaker's Alexion acquisition five years ago.
Politics is a further complication if AstraZeneca were to use a deal to move its domicile to the United States.
With the shares now on 14 times 2027 earnings, Citi believes a good deal of deal risk has been discounted.
Deutsche Bank, which has a 'sell' rating and an 11,500p target, framed the situation as Alexion déjà vu.
He noted that the previous $45 billion target for 2023 was ultimately met only because of the Alexion purchase.