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On Friday, Sanofi (SAN:FP) (NASDAQ: NASDAQ:SNY) saw its price target increased by Leerink Partners from €113.00 to €120.00, while the firm maintained an Outperform rating on the company’s shares. Currently trading at $54.15, Sanofi boasts a market capitalization of $134.31 billion and maintains a "GREAT" Financial Health Score according to InvestingPro analysis. The adjustment follows a detailed analysis of the company’s financial prospects and product performance, particularly its leading product, Dupixent.
Despite Dupixent’s sales in the United States falling short of expectations in the fourth quarter of 2024, due to rebate adjustments and a channel inventory workdown, Leerink Partners remains optimistic about the drug’s future and the overall growth prospects of Sanofi. The company has demonstrated solid performance with a 6.01% revenue growth in the last twelve months. The firm’s confidence is bolstered by the year-over-year (YoY) treatment prescription growth of Dupixent, which has shown an acceleration from 25% to 30% over the past year.
Leerink Partners’ revised price target is based on a steady 13.0 times multiplier of the projected adjusted diluted earnings per share (EPS) for 2026, which is estimated to rise from €8.70 to €9.21. The firm expects Dupixent’s recent launch for Chronic Obstructive Pulmonary Disease (COPD) to contribute increasingly to the company’s performance in 2025. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels.
Sanofi’s attractiveness in the market is further supported by three main factors as highlighted by Leerink Partners. First, the stock’s low price-to-earnings (P/E) ratio, standing at 11.25 times the firm’s projected 2026 adjusted diluted EPS of €9.23. Second, the anticipated acceleration in earnings growth, with a projected compound annual growth rate (CAGR) of 8% for earnings per share from 2025 to 2030. Lastly, the strength of Sanofi’s pipeline, which includes four significant catalysts expected within the year, positions the company for potential blockbuster launches. Adding to its appeal, the stock offers a 2.73% dividend yield. These elements collectively contribute to Leerink Partners’ positive outlook on Sanofi’s stock. For deeper insights into Sanofi’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Sanofi-Aventis has reported significant advancements in its pharmaceutical developments and financial performance. The company recently announced positive top-line results from a Phase II trial of the drug duvakitug, co-developed with Teva Pharmaceuticals, showing promising outcomes in treating ulcerative colitis and Crohn’s disease. This development has led to plans for initiating Phase III trials, with Sanofi leading the charge and Teva Pharmaceuticals agreeing to cover half of the research and development costs.
Continuing with the financial highlights, Sanofi-Aventis reported robust Q3 earnings, with total sales reaching €13.4 billion, marking a 16% increase at constant exchange rates. The company also raised its 2024 Business EPS guidance, reflecting growth in areas like Dupixent and Vaccines.
In addition to these developments, Sanofi is in exclusive discussions to sell a controlling stake in Opella to CD&R for €16 billion, expected to close by 2025. Analysts from TD Cowen have maintained a Hold rating on Sanofi, citing these advancements and the company’s strong financial health. These recent developments signify a period of progress for Sanofi-Aventis, as it continues to advance its pharmaceutical portfolio and financial growth.
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