AstraZeneca initiated with "sell"

02/12/08 - ING Financial Markets

LONDON, February 12 (newratings.com) - Analysts at ING Financial Markets initiate coverage of AstraZeneca Plc (AZN-GBX) with a "sell" rating. The target price is set to 1,760p.

In a research note published this morning, the analysts mention that the company faces the risk of the launch of generics for its two key drugs, Nexium and Seroquel. Despite substantial cost control initiatives, AstraZeneca’s R&D investments would continue to exert pressure on the company’s margins in FY10-FY12, the analysts say.