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BofA Securities lowered its price target on Sanofi (SAN:FP) (NASDAQ:SNY) to EUR8.40 from EUR8.48 on Tuesday, while maintaining a Buy rating on the French pharmaceutical company’s stock. With a market capitalization of $119.5 billion and trading at $48.91, Sanofi appears undervalued according to InvestingPro analysis, which shows strong fundamentals and a "Good" Financial Health score of 2.98/5.
The price target adjustment follows mixed data from Phase III trials of itepekimab in chronic obstructive pulmonary disease (COPD), according to BofA Securities. The firm now views the upcoming amlitelimab Phase III results in atopic dermatitis as crucial, with data expected in the third quarter. Analyst consensus remains bullish with a 1.82 rating (where 1 is Strong Buy), with price targets ranging from $56 to $69.
BofA Securities noted that Sanofi’s current valuation of approximately 9 times its 2026 estimated price-to-earnings ratio suggests investors are attributing little value to the company’s pipeline. The firm believes positive amlitelimab Phase III data would help validate Sanofi’s research and development turnaround efforts. The company’s current P/E ratio of 17.05 and impressive gross profit margin of 71% suggest strong operational efficiency. Get deeper insights into Sanofi’s valuation metrics and growth potential with a comprehensive InvestingPro Research Report, part of our coverage of 1,400+ top stocks.
The investment bank forecasts EUR4 billion in peak sales potential for amlitelimab in atopic dermatitis, risk-adjusted to EUR2.4 billion. BofA Securities estimates the study’s success or failure could impact earnings per share by +5% or -7%, respectively.
In a best-case scenario, BofA Securities suggests the Phase III results could mirror Phase II outcomes, showing efficacy comparable or slightly superior to Dupixent, with extended dosing and clean safety profile that would be competitive against Amgen (NASDAQ:AMGN)’s rocatinlimab.
In other recent news, Nurix Therapeutics has entered into a licensing agreement with Sanofi for its STAT6 program, resulting in a $15 million fee for Nurix. This collaboration follows promising Phase 1 data from Kymera Therapeutics, increasing interest in STAT6-targeted therapies. Despite this development, Leerink Partners has maintained a Market Perform rating for Nurix, with a price target of $16.00, while emphasizing the importance of Nurix’s BTK degrader, bexobrutideg, in treating chronic lymphocytic leukemia. Nurix is expected to release updated Phase 1 data for bexobrutideg later this month, which could influence future evaluations. Meanwhile, TD Cowen has maintained a Hold rating on Sanofi, with a price target of $67.00, following a meeting with the company’s CFO. Sanofi expressed confidence in meeting its guidance for Dupixent and highlighted the approval of its Covid vaccine Biologics License Application as a positive development. Additionally, Sanofi anticipates significant growth for its RSV monoclonal antibody, Beyfortus, projecting it to capture a substantial market share in the near term.
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