AstraZeneca "reduce"

05/15/07 - Dresdner Kleinwort Wasser.

LONDON, May 15 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "reduce" rating on AstraZeneca (AZN-GBX). The target price is set to 2550p.

In a research note published this morning, the analysts mention AstraZeneca would be able to achieve the targeted cash EPS accretion from the MedImmune acquisition in 2009, if the latter company succeeds in attaining its sales growth guidance of 50% for 2006-2009. The targeted sales growth for MedImmune requires robust uptake for HPV and flu vaccines, along with RSV vaccine franchise’s return to growth, Dresdner Kleinwort adds. There is limited potential upside to MedImmune’s pipeline in the current decade, the analysts say.