Sanofi’s Growth Potential and Strategic Moves Justify Buy Rating Amidst Margin Concerns

Analyst Sachin Jain from Bank of America Securities reiterated a Buy rating on Sanofi and keeping the price target at €115.00.

Sachin Jain has given his Buy rating due to a combination of factors that highlight Sanofi’s potential for growth and value. Despite concerns about margin pressures and reimbursement income loss, Jain believes that the company’s strategic moves, such as the Amvuttra royalty, will help defend its margins. Additionally, the potential success of amlitelimab in a market with low biologics penetration offers promising growth opportunities.
Jain also notes that Sanofi’s earnings per share (EPS) forecasts have been minimally adjusted, with slight increases in R&D and SG&A costs being offset by better-than-expected Amvuttra performance. The company’s pipeline, including amlitelimab and other key projects, is seen as crucial for validating its R&D turnaround and supporting growth beyond Dupixent. With a valuation that appears undervalued relative to its growth prospects, Jain maintains a Buy rating, reflecting confidence in Sanofi’s future performance.

SNYNF’s price has also changed moderately for the past six months – from $108.368 to $92.600, which is a -14.55% drop .