AstraZeneca initiated with "reduce"

11/13/07 - Dresdner Kleinwort Wasser.

LONDON, November 13 (newratings.com) - Analysts at Dresdner Kleinwort initiate coverage of AstraZeneca Plc (AZN-GBX) with a "reduce" rating. The target price is set to 2,000p.

In a research note published this morning, the analysts mention that the company is expected to generate sales growth of between less than 1% and 3% over the forthcoming eight years. For AstraZeneca to be able to achieve 3% sales growth, it would have to generate $6.5 billion in incremental sales by 2015, indicating four major product launches from 2009 onwards, the analysts say. Saxagliptin liver safety remains an area of concern, while the product’s performance is significant for AstraZeneca’s profits, Dresdner Kleinwort adds. The company is expected to underperform the sector, according to the analysts.