Buy Rating Affirmed for Sanofi Amid Strong Growth Prospects and Undervalued Stock

In a report released today, Graham Parry from Bank of America Securities reiterated a Buy rating on Sanofi (SNYNF – Research Report), with a price target of €122.00.

Graham Parry has given his Buy rating due to a combination of factors including the well-flagged tough first quarter which is considered to be already accounted for in the year’s conservative guidance. While the expected earnings per share show a decrease, the sales growth, particularly from products like Dupixent and the promising launch of Altuviiio, is likely to balance the revenue headwinds. The guidance for the fiscal year remains low but appears conservative, considering recent successful product launches and potential savings from discontinued trials.

Moreover, Parry sees Sanofi’s stock as undervalued, with the company’s growth prospects not fully reflected in the current share price. Key launches and a robust pipeline are expected to drive a compound annual growth rate of approximately 10% from 2025 to 2028. Additionally, no major loss of exclusivity is expected until at least 2031, and upcoming catalysts, along with the possible separation of the Consumer Health Care division, could serve as positive drivers for the stock’s value.

In another report released yesterday, UBS also maintained a Buy rating on the stock with a €110.00 price target.

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Sanofi (SNYNF) Company Description:

Sanofi engages in the research, production and distribution of pharmaceutical products. It operates through the following business segments: Pharmaceuticals, Consumer Healthcare, and Human Vaccines. The Pharmaceuticals segment comprises the commercial operations of the following global franchises: specialty care, diabetes & cardiovascular, established prescription products and generics, together with research, development and production activities. This segment also includes all associates whose activities are related to pharmaceuticals. The Consumer Healthcare segment comprises, for all geographical territories, the commercial operations for its Consumer Healthcare products, together with research, development and production activities dedicated to those products. The Vaccines segment comprises, for all geographical territories, the commercial operations of Sanofi Pasteur, together with research, development and production activities dedicated to vaccines. The company was founded in 1973 and is headquartered in Paris, France.