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AZN / Oxford Vaccine – Market Alert

AZN / Oxford vaccine trials said to produce robust immune response in elderly

According to the FT, the AstraZeneca / Oxford Covid-19 vaccine triggers protective antibodies and T-cells in older age groups.

The newspaper reported this morning that the details of the findings, which are expected to be published shortly in a clinical journal, echo the data released in July which showed the vaccine generated “robust immune responses” in a group of healthy adults aged between 18 and 55.

The FT did caution that positive immunogenicity tests do not guarantee that the vaccine will ultimately prove safe and effective in older people.

Fundamentals

AstraZeneca trades on a forward earnings multiple of 21.6 – about average for the Pharmaceuticals sector. However, this valuation starts to look more attractive when you compare it against AstraZeneca’s forward earnings growth rate of 37.4% – giving the stock an attractive PEG ratio (Price to Earnings Growth) of 0.8.

Technicals

AstraZeneca’s share price has moved down into a key zone of support created by the broken January highs (7,724p), the June swing lows (8,046p) and the early September swing lows (7,932p).

When viewed in the context of the shares long-term uptrend, this support zone looks very compelling. However, it is worth noting that the shares have recently been making lower swing highs and therefore have a descending trendline to contend with.  

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