AstraZeneca PLC (AZN): A Bull Case Theory

We came across a bullish thesis on AstraZeneca PLC on Disruptive analytics’s Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on AZN. AstraZeneca PLC's share was trading at $85.31 as of October 3rd. AZN’s trailing and forward P/E were 31.51 and 16.31 respectively according to Yahoo Finance.

AstraZeneca is a leading player in antibody-drug conjugates (ADCs) and targeted cancer therapies, with a strong portfolio spanning both marketed and development-stage treatments. Its flagship ADC, Enhertu, developed in collaboration with Daiichi Sankyo, is approved for breast, gastric, and lung cancers and functions as a highly targeted therapy, delivering the chemotherapy agent deruxtecan directly into HER2-positive cancer cells.

By acting like a “smart bomb,” Enhertu selectively damages cancer cell DNA while minimizing impact on healthy tissue, highlighting its therapeutic precision. In 2024, Enhertu generated approximately $2.5 billion in global revenue, reflecting both robust market adoption and the success of its targeted mechanism.

The drug’s growth trajectory remains strong, supported by ongoing regulatory approvals and expansions into additional solid tumors, positioning it as a core revenue driver for AstraZeneca. Beyond Enhertu, the company has several other ADCs and targeted therapies in early to mid-stage development, including CFTX-1554 and MEDI2228, which could add significant value if successfully commercialized.

AstraZeneca’s focus on high-potency, precision oncology treatments underscores its strategic positioning in a rapidly evolving market, with multiple catalysts for both near-term and long-term growth. Overall, the company combines proven commercial success with a robust pipeline, offering investors exposure to both current revenue generation and potential future upside through its advanced targeted therapy programs.

Previously we covered a bullish thesis on Pfizer Inc. (PFE) by Akim Guerreiro in September 2024, which highlighted the company’s 5.80% dividend yield, strong pipeline, and strategic acquisitions like Seagen. The stock has depreciated approximately by 6.13% since our coverage due to normalized COVID-19 vaccine sales. The thesis still stands as growth catalysts remain intact. Magnus Ofstad shares a similar bullish outlook but emphasizes AstraZeneca’s leadership in ADCs and targeted cancer therapies.

AstraZeneca PLC is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held AZN at the end of the second quarter which was 56 in the previous quarter. While we acknowledge the potential of AZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.