DexCom earnings beat by $0.03, revenue topped estimates
On Wednesday, Bernstein SocGen Group analysts reiterated an Outperform rating for Sanofi stock (SAN:FP) (NASDAQ:SNY), maintaining a price target of €124.00. The analysts highlighted the company’s potential for above-average, low-risk earnings per share growth.
The analysts expressed confidence in Sanofi’s refocused pipeline, noting that expectations remain low. They anticipate that increased visibility in this area will help address concerns about portfolio concentration risks. This, they believe, could lead to an expansion of the company’s price-to-earnings ratio.
Sanofi’s growth is expected to surpass the pharmaceutical sector, with an estimated earnings per share compound annual growth rate of over 10% from 2024 to 2029. This growth is attributed to the success of Dupixent, newly launched products, minimal patent expirations, and limited exposure to the Inflation Reduction Act.
The analysts also noted that the inflammation pipeline, excluding Dupixent, offers opportunities for improved visibility. They expect this to further mitigate portfolio concentration concerns and contribute to a potential rerating of the stock.
Sanofi’s focus on pharmaceutical innovation and the separation of its consumer division are progressing as planned, according to the analysts. They anticipate that pipeline catalysts will continue to drive the company’s performance.
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