Balanced Risk-Reward Amid Promising Lunsekimig Data and Valuation Uncertainty Supports Hold Rating

Analyst Steve Scala of TD Cowen maintained a Hold rating on Sanofi, retaining the price target of $57.00.

Steve Scala has given his Hold rating due to a combination of factors, balancing encouraging drug data with valuation and competitive risks. He views lunsekimig’s Phase II results in asthma and nasal polyps as meaningfully positive, especially the reduction in exacerbations and lung function gains across biomarker subgroups, which reinforce Sanofi’s positioning in a large and growing respiratory biologics market.

At the same time, Scala is cautious because management only characterizes lunsekimig’s profile as “potentially” differentiated versus existing TSLP therapies, and key details such as final dosing strategy and head‑to‑head competitiveness remain uncertain. With expectations already reflecting a sizable opportunity and only modest model adjustments ahead of Q1, he judges the risk‑reward as balanced rather than compelling, supporting a Hold rather than a more aggressive rating.