Sanofi- A Good Bet or Risk-Sensitive?

PUBLISHED May 8, 2025, 5:05:04 PM        SHARE

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ImageHult Intern

About Sanofi S.A. (SNY)

Sanofi S.A. is a French multinational pharmaceutical and healthcare company which was established in 1973. Headquartered in Paris, its core businesses span across pharmaceuticals, vaccines and consumer healthcare. With a global presence in more than 30 countries, it has been on the watchlist of investors due to its recent strategic initiatives which have received a positive outlook from the analysts. Sanofi holds an AA long-term credit rating with a Stable outlook from S&P Global Ratings. Its stock currently trades at $52.14 on NYSE and at €91.76 on Euronext Paris.

Recent Financial Performance

The company has witnessed a couple of past robust quarters, largely due to its bold key moves to streamline its operations and focus on its core business of biopharma. In April 2025, its Business EPS was €1.79, up 15.7% at CER and up 17.0% reported and IFRS EPS was €1.52. Sanofi’s 2025 Q1 results showcased strong financial performance indicators. Its net sales were €9.9 billion, a 10.8% increase year-over-year and net income, €2.2 billion which was a 15.9% increase from the prior-year period. Reflecting increased activity in mid- and late-stage development, its R&D expenses augmented by 6.9% to reach €1.8 billion.

SG&A expenses were €2.2 billion, an uprise of 3.8%. Sanofi’s significant profits were boosted by the increased sale of Dupixent and the newer drugs. Dupixent recorded sales of €3.5 billion, Beyfortus €284 million and ALTUVIIIO €0.8 billion. The company’s announcement of a share buyback of €5 billion in 2025 has received a positive market response. Additionally the company completed the sale of a 50% controlling stake in Opella, its consumer healthcare division, and received around €10 billion in net cash proceeds.

Competition Benchmarking

In the recent times, the Sanofi stock has garnered more stability than its competitor Pfizer and less than Novartis. While the former’s current price is $52.08, that of Pfizer is $23.03 and Novartis is $110.49. Sanofi’s stability revolves around its promising 2025 Q1 results, high product sales and divestiture of Opella. Along with having the highest market cap of $221.53 billion, Novartis has received consistent growth in its key drugs, cost and operational efficiencies and strong R&D implementation. The continuous execution of its R&D is well-regarded by the investors despite a decrease of 11.14% in its R&D expenses in 2024.

Conversely, the Pfizer stock has been unstable due to the residual impact of the pandemic, sales decline of its key products and investors’ apprehensions about its strategic efforts and sustainability potential. Overall, the Sanofi stock is realigning and gaining fast-paced momentum whereas that of Pfizer is fluctuating and Novartis is surging with steadiness.

Benefits and Risks of Sanofi Stock

Sanofi is certainly watch-worthy due to its strong growth prospects and noteworthy potential risks. It anticipates a low double-digit percentage increase in business earnings per share (EPS) at constant exchange rates (CER) for 2025, building upon a 4.1% rise in 2024, as reported by Nasdaq. It has also secured strong analyst projections. The analysts claim that 2025 revenues will reach approximately €46.8 billion, reflecting a 5.7% growth, with earnings before interest and taxes (EBIT) expected to climb by 12.1% to €12.7 billion.

Its future growth will be further enriched by the recent launches and approvals of its new products. Sanofi has a forward P/E ratio of 11.53 which is below the industry average of 18.72.

The investor confidence includes skepticism about the potential risks that are associated with the company’s large dependence on important products, challenges with pipeline development, regulatory changes and market volatility. The company’s flagship drug Dupixent contributes around 22% of its sales each year. The pipeline requirements for clinical trials and key elements such as amlitelimab and tolebrutinib are critical to the revenue stream of Sanofi. The tariff war is expected to have the highest influence on sectors such as healthcare.

Bullish or Bearish?

Sanofi holds a status of Bullish due to its promising growth potential, emphasis on stakeholder return, strategic focus on biopharmaceuticals and investor confidence. Analysts have set a 12-month average price target of $63.33 for Sanofi, indicating an 18.9% upside from its current price of $52.14 on NYSE. The forecasts range between $60.00 and $65.00. Presently, the Sanofi stock is trading above its 50-day and 200-day moving averages. It is trading below the pharmaceutical industry average stock prices and is therefore undervalued. Sanofi is a good buy, though with the cautious monitoring of the developments in its potential risks.

SNY, Buy

Sanofi
Return: 0.00%

SNY, Buy

Return: 0.00%


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