Fundamentals are in tact despite recent negative sentiment for the stock

AstraZeneca shares have fallen roughly 25% since April, to 11,560p, on weak trial data, reported takeover bid for Bristol Myers Squibb, and concerns over US government measures on drug prices. Despite this, our core long-term thesis, built on the oncology business, holds. Cancer medicines, 46% of revenue, grew 15% to 14.1bn USD, beating the market's 11% expectation, while net profit beat estimates by 6%. The company remains on track for its 80bn USD 2030 revenue target (requiring 6% annual growth) and we believe it will surpass it. Shares now trade at 12x estimated 2027 operating earnings (EBITDA), 30% below its historical average. We believe this discount does not reflect the long term potential of the stock, and keep our positive stance.