AstraZeneca (AZN) Soars to 1-Year Peak—Big Pharma’s Latest Win Explained

AstraZeneca shares just smashed through their 12-month ceiling—here's what's fueling the rally.

The Catalysts Behind AZN's Surge

Blockbuster drug approvals? Pipeline breakthroughs? Or just another case of institutional FOMO? We break down the numbers behind Big Pharma's latest darling.

Market Mechanics at Play

While retail investors chase the momentum, hedge funds quietly loaded up on AZN calls weeks ago—because nothing says 'efficient markets' like insiders front-running the news cycle.

The stock's now trading at levels not seen since last November, proving once again that in pharma, the house always wins—especially when that house holds patents on half the WHO's essential medicines list.

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On Monday, the stock ROSE more than 3% to reach $87.48 per share and extended the gains marginally during Tuesday’s pre-market to reach $87.69. The new high propelled AstraZeneca’s market value on Nasdaq to about $263.33 billion, with an enterprise value of $264.05 billion.

Similarly, back at home in the U.K., AstraZeneca’s stock breached its September 2024 level to reach a new record high. The shares rose as high as £134.6 per share (254) on Tuesday morning, reinforcing the pharma giant’s position as the largest company listed on the London Stock Exchange.

AstraZeneca Beats Wall Street

The new highs come as AstraZeneca’s third-quarter Fiscal Year 2025 results beat Wall Street’s estimates, with the company raising its guidance for the full fiscal year.

During the quarter, the Cambridge-based company’s revenue rose 12% from a year ago to $15.19 billion, beating a consensus forecast of $14.87 billion. Furthermore, the company grew its earnings per share by 14% to $1.19, comfortably surpassing analysts’ expectations of $1.14.

AstraZeneca Makes Pivot to U.S.

Meanwhile, the record high in the U.S. follows AstraZeneca’s recent win of its shareholders’ vote to list directly in New York, marking a strategic shift towards its largest market while remaining dual-listed.

However, while AstraZeneca’s recent drug discount deal with the TRUMP administration is expected to help support its growth in the U.S., the British company expects its core gross margin to drop slightly due to the impact of Medicare Part D reforms in the U.S and increased profit sharing from its partnered products.

Under the U.S. government’s health reforms, the annual out-of-pocket maximum for drugs covered by the Medicare health insurance program was limited to $2,000among other changes. The new rules came into force in January.

Is AstraZeneca a Buy or Sell?

On Wall Street, AstraZeneca’s shares currently have a Strong Buy consensus rating, as seen on TipRanks. This is based on five Buy recommendations assigned by analysts over the past three months. Moreover, the average AZN price target of $94.50 indicates about 8% upside from the current trading level.