AstraZeneca PLC's (AZN  ) solid third-quarter results, along with a shift in the clinical trial results for a lung cancer drug candidate, "remove overhangs," according to RBC Capital Markets analyst Trung Huynh.

The AstraZeneca Analyst: Huynh maintained an Outperform rating and raised the price target from $195.27 per share to $204.18 per share.

The AstraZeneca Thesis: Management detailed a long-term profit plan, including cutting costs on older drugs, like Tagrisso and Imfinzi, and reinvesting those savings into new drug development, the analyst said. He added, however, that AstraZeneca's margins could face near-term pressure.

Regarding new drug laroprovstat, management "reiterated physician feedback that the absence of a food effect is meaningful and they are willing to trade some efficacy for convenience," Huynh wrote.

A shift in the clinical trial results for lung cancer drug AVANZAR to early 2027 gives management time to collect mature efficacy and overall survival data, removing uncertainty for investors, the analyst noted.

The stock is trading at an attractive price versus peers despite AstraZeneca'sbetter growth potential, he further stated.

Following the third-quarter results, the analyst lowered the 2026 and 2027 revenue estimates from $63.7 billion to $63.6 billion and from $68.4 billion to $68.3 billion, respectively. The earnings estimates for 2026 and 2027 were adjusted from $10.24 per share to $10.26 per share and from $11.45 per share to $11.25 per share, respectively.

Huynh noted that investors may focus on the following major Phase III clinical trial readouts through 2027:

• AVANZAR trial data for lung cancer in early 2027
• Trial results for camizestrant (breast cancer), laroprovstat (cholesterol management), and Farxiga combinations (kidney and heart disease) in mid-2027.
• Multiple trial results for Datroway across lung and breast cancers, alongside saruparib for prostate cancer in late-2027.