Barclays analyst Emily Field says the selloff yesterday in shares of AstraZeneca (AZN) on a local news report that China’s investigation into fraudulent practices has expanded “feels far overdone.” The stock is now down 12% since news first broke last Wednesday, which “given what we know thus far is a dramatic overreaction,” the analyst tells investors in a research note. The firm points out that China is 13% of AstraZeneca’s total sales, its operating margins in China are lower than the company average and at this stage Barclays has no evidence to suggest the investigation is broader than Oncology. Current share levels represent a “very attractive entry point ahead of a catalyst-rich 2025,” the firm contends. It keeps an Overweight rating on the shares.
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