Will the AstraZeneca share price be the largest FTSE 100 riser in 2021?

first_img Stuart Blair | Tuesday, 29th December, 2020 | More on: AZN “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Stuart Blair owns shares in Royal Dutch Shell. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. See all posts by Stuart Blair Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Will the AstraZeneca share price be the largest FTSE 100 riser in 2021?center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Under Pascal Soriot, the AstraZeneca (LSE: AZN) share price has seen tremendous growth. In fact, in 2012 the share price was 3,000p, yet it saw highs of 9,600p in July this year. As such, the pharmaceutical company has, for a certain period of time, seen its market capitalisation overtake both Royal Dutch Shell and Unilever to top the FTSE 100.But the past few months have been less favourable for the company. In fact, after news of its deal to buy Alexion for £29bn, its share price has fallen to 7,550p. This fall may be unjustified, however. Soriot believes the acquisition will aid the company in its growth over the next few years and allow it to regain its spot at the top of the FTSE 100. As such, as we head into 2021, are AstraZeneca shares the perfect buy? Yes and no!5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The deal to buy AlexionDespite the success of Soriot’s tenure, he’s not immune to criticism and came in for a lot of it over the decision to buy Alexion. Much of this revolved around overpayment. The offer price of $175 a share was at a 45% premium to Alexion’s closing price on the day. The firm is therefore now making its largest-ever acquisition and is required to secure a $17.5bn loan to help with payment. This will add to its already large debt pile — so no surprise that the AstraZeneca share price saw a 6% fall on the day the deal was announced.There’s also a question of necessity. AstraZeneca already has a powerful portfolio and pipeline of different drugs and revenues were expected to grow as much as 33% by 2024. There are worries that this acquisition may disrupt its growth and is an unnecessary distraction (and expense).But there are always two sides to the story. You see, there are also hopes that the deal could drive large gains in the AstraZeneca share price. Why? It will help AZN “enhance [its] presence in immunology”, while also strengthening cash generation. There are even reports the company could increase its dividend as a result. With a price-to-earnings ratio of under 10, Alexion was also fairly cheap in comparison to other pharma companies. As such, the acquisition could end up being a very shrewd move indeed.Will the AstraZeneca share price be the largest riser?Alongside this acquisition, there’s also plenty more news affecting the share price. For example, recent reports indicate the Oxford/AstraZeneca vaccine is to be approved in the UK within days. Although Soriot has agreed to supply the vaccine at cost price during the pandemic, meaning that the company will get no initial profits, this is still good news for its reputation and potential future profits.Recently, AstraZeneca also released news that cancer drug Lynparza received approval from Japan’s regulator. This should also help boost profits.As such, I believe that the AstraZeneca share price will rise in 2021 due to its enviable selection of various drugs and more-than-competent leadership. Although I’m not convinced by the deal to buy Alexion, AZN’s subsequent share price drop offers an opportunity to buy at a more reasonable price.But to answer the question in the title of this piece, I don’t think it will be the largest riser in the FTSE 100 next year. For bigger gains, I’d consider either oil or bank stocks instead. Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images Enter Your Email Addresslast_img

Leave a Reply

Your email address will not be published. Required fields are marked *

  • Recent Posts

  • Recent Comments

    • Archives

    • Categories

    • Meta

    • Tags