US stock futures edge lower after S&P 500 hits record high; PCE data in focus
Investing.com -- J.P. Morgan has upgraded Sanofi’s (EPA:SASY) rating to “overweight” from “neutral,” setting a December 2026 price target of €105, down from the previous €110, in a note dated Friday.
The brokerage cited a favorable outlook for two late-stage drugs, amlitelimab for atopic dermatitis and tolebrutinib for primary progressive multiple sclerosis, as key factors behind the change.
Amlitelimab’s Phase III COAST-1 trial results, expected in the third quarter of 2025, are projected to show 28% to 34% placebo-adjusted EASI-75 efficacy at week 24 for a four-week dosing schedule, similar to competing drugs but with less frequent dosing.
J.P. Morgan estimates the drug could generate €2 billion to €3 billion in peak sales, with further potential if a 12-week maintenance schedule performs well in a separate 2026 trial.
Tolebrutinib’s Phase III PERSEUS trial in primary progressive multiple sclerosis is due in the third or fourth quarter of 2025.
Prior data from other multiple sclerosis forms suggest the drug could achieve statistically significant reductions in confirmed disability progression, potentially supporting at least €1 billion in sales in this indication alone.
Across primary and secondary progressive forms, J.P. Morgan forecasts unadjusted peak sales of €2.9 billion.
The brokerage’s revised forecasts reflect 2% to 3% cuts to 2025-2030 sales and business EPS due to currency headwinds, but its 2026 business EPS growth projection remains 11% on an underlying basis.
Sanofi’s shares are trading at a 20% discount to the sector despite a 2025-2030 EPS compound annual growth rate of 7%, which J.P. Morgan says is 50% above the sector average.
The price target is based on a sum-of-the-parts valuation applying roughly 12 times 2026 estimated earnings per share and including Sanofi’s 47.8% stake in Opella, valued at €3 per share.