Sanofi’s Promising Pipeline and Competitive Positioning Justify Buy Rating Despite Mixed Study Results

Analyst Sachin Jain from Bank of America Securities maintained a Buy rating on Sanofi (SNYNF – Research Report) and keeping the price target at €123.00.

Sachin Jain has given his Buy rating due to a combination of factors including the promising results from Sanofi’s AERIFY-1 study for itepekimab, which demonstrated a 27% reduction in exacerbations among former smoker COPD patients. This efficacy is competitive when compared to existing treatments and offers a broader application across all eosinophil levels, unlike current biologics that are limited to high-eosinophil phenotypes. Although the AERIFY-2 study did not meet its primary endpoint, the overall potential of itepekimab in addressing unmet needs in COPD provides a strong basis for Sanofi’s continued progress.
Additionally, Sanofi’s pipeline includes amlitelimab, which is in Phase III trials for atopic dermatitis and has shown promising Phase IIb results. The potential for amlitelimab to achieve significant sales, coupled with its competitive positioning against established treatments like Dupixent, further supports the Buy rating. Sanofi’s low price-to-earnings ratio, reflecting limited pipeline upside, is seen as an opportunity given the promising data from these trials, indicating a potential R&D turnaround for the company.

In another report released on May 28, Jefferies also maintained a Buy rating on the stock with a €120.00 price target.