Citi Upgrades Sanofi Stock Target Amid Strong Pharmaceuticals Growth
Citi Updates Sanofi Stock Price Target
Citi has recently reassessed its outlook on Sanofi (NASDAQ: SNY), increasing the price target from EUR125.00 to EUR130.00. This adjustment showcases the firm's optimism regarding the pharmaceutical sector, particularly in Europe, which is anticipated to experience remarkable growth.
Buy Rating Sustained
The firm has opted to sustain its Buy rating on Sanofi's shares. Analysts indicate that the European Pharma sector is projected to see a compound annual growth rate (CAGR) of 5 to 8 percent in both sales and earnings per share (EPS) from 2024 to 2029. Notably, Sanofi is trading at a 20 percent discount, all while forecasting a more impressive CAGR of between 8 to 15 percent.
Positive Risk-Reward Assessment
Citi's analysis has taken into account various scenarios concerning Dupixent's longevity and sales figures, along with assessments of pipeline forecasts and flu vaccine projections. These evaluations suggest a very favorable risk-reward ratio for Sanofi, estimating potential price ranges from EUR87 to EUR185.
Sales Guidance and Forecasts
Guidance for peak sales from Sanofi's core 12 pipeline assets estimates an impressive EUR30 to 60 billion. However, Citi’s base and bull-case scenarios are more conservative, projecting EUR15 to 20 billion, which still surpasses the consensus estimate of EUR10 billion.
Enhanced Forecast for Tolebrutinib
The recent report from Citi highlights the positive data surrounding tolebrutinib, a significant factor that has led to an impressive upward revision in its peak sales forecast, now estimated at EUR2.6 billion, a substantial increase of 300% from the consensus figure of EUR1.4 billion. Such developments are viewed as clear indicators of Sanofi’s improving research and development productivity.
Phase III Assets and Underappreciated Factors
In addition, Citi’s analysis calls attention to several of Sanofi’s Phase III assets, such as itepekimab for COPD, amlitelimab for atopic dermatitis and asthma, and frexalimab for multiple sclerosis and type 1 diabetes, all of which are not receiving the recognition they deserve. Furthermore, the durability and sales potential of the Dupixent franchise, along with the expected EUR1 to 3 billion royalty stream from Amvuttra, are also identified as factors that deserve more appreciation in the market. Citi’s revised forecasts indicate sales and EBIT/EPS ahead of the 2030 consensus by 16 to 36 percent.
Frequently Asked Questions
1. What is the new price target for Sanofi as set by Citi?
Citi has updated the price target for Sanofi from EUR125.00 to EUR130.00.
2. What rating does Citi maintain on Sanofi stocks?
Citi continues to maintain a Buy rating on Sanofi's shares.
3. How does Sanofi's projected CAGR compare to the European Pharma sector?
Sanofi's projected CAGR is between 8 to 15 percent, which is higher than the European Pharma sector's expected 5 to 8 percent.
4. What is the potential price range for Sanofi according to Citi?
The potential price range for Sanofi is estimated between EUR87 and EUR185.
5. How much revenue does Citi estimate for Sanofi’s core pipeline assets?
Citi estimates peak sales for Sanofi's core pipeline assets to range from EUR30 billion to EUR60 billion.
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