Core Recommendations
BofA Securities has named AstraZeneca, Bayer and Roche as its top pharmaceutical picks, citing a combination of pipeline risk‑reward strength and attractive valuation multiples. The broker also elevated Genmab to its highest‑conviction SMID biotech selection, pointing to three anticipated Phase III data readouts slated for the fourth quarter of 2026. Novartis remains rated as a Buy, despite already being the sector’s best year‑to‑date performer.
Pipeline Highlights
For AstraZeneca, BofA notes that recent speculation surrounding the eplontersen program and Bristol‑Myers Squibb (BMY) has pressured the stock, but the firm believes forthcoming S4/AVANZAR data will counter the narrative. The analyst highlights a busy 2027E news‑flow calendar that includes the CAMBRIA1 program, saruparib, lifecycle management of Farxiga, and an oral PCSK9 inhibitor. Bayer’s bullish stance is underpinned by the under‑appreciated pharma business, improving free cash flow, and key assets such as asundexian, Nubeqa and Kerendia. Roche is rated a Buy with the upcoming launch of giredestrant identified as a primary catalyst, complemented by a favorable risk‑reward profile for fenebrutinib. BofA also flags a broader pipeline for Roche that includes FGF21, TL1A, trontinemab and NXT‑007.
Valuation Updates
BofA raised its price objective for Roche to CHF 415, up from CHF 380, reflecting the added upside from the giredestrant launch and fenebrutinib’s positioning. No explicit price target changes were disclosed for AstraZeneca, Bayer or the other names.
Publication Details
The article, authored by Navamya Acharya and published on 8 September 2026 at 05:52 pm (updated at 05:58 pm), was generated with AI assistance and subsequently reviewed by an editor. © Reuters.