Analyst consensus points to a 'hold' at Astrazeneca, says Hargreaves Lansdown

6th Nov 2014 12:37

Upgrades to full-year guidance at pharmaceutical firm Astrazeneca may have reassured investors, but the average analyst still remains on the fence, according to Hargreaves Lansdown Stockbrokers.It said that the analyst consensus opinion is currently pointing to a 'hold', with the share price having jumped over 40% over the last year alone.Astra on Thursday increased its full-year revenue and earnings guidance after good performances by its flagship drugs in the third quarter.2014 annual revenue is now expected to increase in low single digits at constant exchange rates rather than its previous guidance for revenue to match that of 2013. It said core earnings per share (EPS) were now expected to fall about 10% at constant exchange rates, better than anticipated in previous guidance.Astra also announced that it would be selling Myalept, its treatment of leptin deficiency in patients with generalised lipodystrophy, to Aegerion Pharmaceuticals for $325m.Hargreaves analyst Keith Bowman said that after this year's rejection of a mutlibillion-dollar takeover bid from US pharma giant Pfizer, "management has again provided further investor reassurance"."The group's chosen growth platforms continue to make progress, with sales in both the US and Emerging Markets proving notable performers, whilst the group's re-positioning of its portfolio remains ongoing, evidenced by today's announced sale of its Myalept product," he said.However, he highlighted that profits are still falling - core EPS was down 8% in the third quarter - with investment in new drugs still ongoing, whilst the resumption of a progressive dividend policy is yet to be made.Bowman said: "Confidence in the group's standalone ability has been expressed via the rejection of the Pfizer bid, with the group's R&D push for new blockbuster drugs gaining momentum. Nonetheless, whilst Pfizer's chief executive does not look to have completely discounted a return, takeover hopes have diminished, while the wait for new major drugs continues."The stock was 1.9% lower at 4,534.5p by 12:54.