Covid-19 vaccine and AZN valuation...13 Feb 2021 14:13
The Covid-19 vaccine hype train has now been removed from the AZN SP.
Currently trading at the start of January 2020 levels, pre pandemic.
If the Alexion acquisition completes we are hopefully looking at multi
year double digit esrnings growth.
To be fair both the shares in issue and AZN net debt increases by a significant amount.
Because AZN are issuing their more highly rated shares to buy Alexion,
the acquisition will hopefully be nicely EPS accretive and cash flow should
see net debt fall quickly.
I thought AZN might have dipped below £70 short term, however buyers
appeared to come back in force yesterday.
Hopefully AZN can successfully develop a vaccine which targets the SA
variant, however this is not relevant to the SP imv.