Broker snap: Citi upgrades AstraZeneca after trial success
AstraZeneca received another shot in the arm today as Citigroup upgraded the drugs giant to 'buy' from 'hold' following successful trials of its cholesterol treatment, Crestor.
AstraZeneca announced Monday that independently verified test results on Crestor had proved successful enough for the current phase of testing to be ended early.
Citigroup said it was increasing its revenue forecasts for AstraZeneca by 6% for 2009 and 32% for 2012.
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It said it expected the company to increase its market share when data from the trials is published, adding that it would be helped by concerns over another cholesterol treatment, Vytorin. Shares in US drugs groups Shering-Plough and Merck slumped on Monday after a panel of doctors advised patients to avoid Vytorin, which is sold by the two companies.
Citi's upgrade of AstraZeneca comes the day after JP Morgan reacted to the Crestor news by lifting its rating on the company to 'neutral' from 'underweight' and raising its target price to 2,045p from 1,770p.
