In a report released today, Sachin Jain from Bank of America Securities reiterated a Buy rating on Sanofi (SNYNF – Research Report), with a price target of €123.00.
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Sachin Jain’s rating is based on several promising developments in Sanofi’s pipeline, particularly the potential of itepekimab in treating COPD. The Phase III trials for itepekimab are expected to yield significant results, building on the positive Phase II data that showed a substantial benefit in former smokers, the primary target population for the upcoming trials. Sanofi anticipates a peak sales opportunity of over EUR 5 billion for itepekimab and Dupixent in COPD, which aligns with Bank of America’s forecast of EUR 5.6 billion, indicating a strong market potential.
Furthermore, Sanofi’s current price-to-earnings ratio suggests that the market has not fully priced in the potential of its pipeline, including other promising candidates like tolebrutinib and amlitelimab. Jain highlights the undervaluation of Sanofi’s growth prospects and the likelihood of positive earnings revisions through FY25. This, combined with the improving pipeline and competitive positioning of itepekimab compared to other anti-IL33 assets, supports the Buy rating for Sanofi’s stock.
In another report released today, Berenberg Bank also maintained a Buy rating on the stock with a €120.00 price target.