(Bloomberg) -- AstraZeneca Plc’s recent share-price rout has gone so far that the pharma stock has shaken off the last of its bearish analyst ratings.
Shares in the London-listed drug maker rose as much as 1.3% on Wednesday after UBS Group AG upgraded the stock to neutral from sell, leaving AstraZeneca with 24 buys, seven holds and no sell or equivalent ratings.
The firm’s shares have fallen by around 10% this month, shedding over $20 billion in market value. An investigation in China over alleged illegal importation of cancer drugs and data privacy breaches have hit sentiment, with the stock losing its status as the UK’s most-valuable listed company to oil major Shell Plc.
“While we recognize the potential impact of the ongoing investigations, we believe that recent approval actions of the China National Medical Products Administration (NMPA) indicate that longer-term support for AstraZeneca in China remains,” UBS analyst Matthew Weston said in a note.
Weston added that, while there is still “significant” China uncertainty, the wholesale loss of AstraZeneca’s franchise seems “highly unlikely.”
The Swiss bank isn’t the only one to turn more positive on the stock, despite its China woes. Nordea Bank Abp and Intron Health both recently hiked their ratings to buy, saying that the slump in AstraZeneca’s shares was overdone.
--With assistance from Joe Easton.
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