BofA Securities has named AstraZeneca, Bayer, and Roche among its top large-cap pharmaceutical picks, citing pipeline strength and valuation, while single-name high-conviction biotech pick Genmab was highlighted in the SMID space. Novartis was separately rated a Buy, noted as the sector's best year-to-date performer.
AstraZeneca shares have faced pressure on speculation surrounding eplontersen and Bristol Myers Squibb, renewing debate over loss-of-exclusivity risk and pipeline depth. BofA sees positive risk-reward ahead of the S4/AVANZAR data readout, and flagged a busy 2027E newsflow calendar that includes CAMBRIA1, saruparib, Farxiga lifecycle management, and an oral PCSK9 inhibitor.
Bayer received a bullish stance driven by valuation, an under-appreciated pharma business, and improving free cash flow. Asundexian was identified as the anchor asset within Bayer's pharma franchise, supported by ongoing contributions from Nubeqa and Kerendia.
Roche was rated a Buy, with BofA raising its price target to CHF415 from CHF380. The bank pointed to the large giredestrant launch as a primary near-term driver, alongside positive risk-reward for fenebrutinib. Additional pipeline assets cited included FGF21, TL1A, trontinemab, and NXT-007.
In the biotech segment, Genmab was named the top high-conviction SMID pick, with BofA citing three Phase III data readouts expected in the fourth quarter of 2026 as key catalysts.
