Loading Please wait
The announcement of the 90%-effective Pfizer anti-Covid vaccine has not only rekindled the world’s stock markets, it has also affected many key sectors. The implications for sectors and actions that will benefit from the discovery of the vaccine is a report by Credit Suisse that the hopes of the vaccine reduce the risk of a third widespread lockdown in Europe.
We published the piece What do we get a vaccine on 14 October, and now review some of the key conclusions. Pfizer’s reading of the 90% efficacy reported today is much higher than many of the clients we have spoken to. Two more vaccines are likely to be reported by the end of the year, they write from Credit Suisse that the scenario of 50 million doses of vaccine by the end of the year and around 800 by mid 2021 is now realistic.
Looking at the sectors best positioned in Europe since the announcement of the final cure at Covid-19, we find transport, diversified finance, airlines and mining, followed by financial sectors and in the United States, energy and insurance.
The vaccine will also play a major role in the alcoholic beverage sectors. Analysts in the Swiss group identify the alcoholic beverages sector as particularly advantageous because it trades cheaply with food manufacturers and is a relatively cyclical asset providing indirect exposure to the global market.
In this respect, Pernod Ricard, Heineken and Carlsberg are the preferred and most recommended names and are covered by an outperform rating.
The insurance sector, with Axa, could also be an area where a rise is worth expecting. The mining sector, which will benefit from further standardisation of industrial production (Anglo American in light), is also worth keeping an eye on. Pharmaceuticals and household products are also good.
Among the stocks, CS experts point to names that have a negative correlation with infections and trade cheaply (Whitbread, Axa, Intesa).