Sanofi: Oddo says stock discounted relative to peers

(CercleFinance.com) - This morning Sanofi announced that it is entering into a new collaboration with the biotech company Translate Bio.

This agreement aims to develop a new mRNA vaccine candidate against COVID-19.

The broker sees 4 main advantages of using mRNA for prophylactic vaccines: 1/ Strong link with natural RNA viral infections, 2/ Possibility of producing complex viral antigens by vaccinating with several different mRNAs. 3/ The research phase is fast with mRNA, design in silico, and 4/ the production cost of mRNA vaccines is much lower than current standards in the vaccine industry, Oddo explains.

The broker positions Sanofi just behind Roche in its coverage as the best positioned player in the current context. It adds that Kevzara (anti IL6) is also being studied as a therapeutic treatment in patients with severe COVID-19.

Oddo believes that the share is trading at an attractive valuation and has confirmed its buy rating on the share - it is trading at a 16% discount relative to peers. The broker has a target price of 105 euros for the Sanofi share (34% upside).



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