Wall Street Zen Downgrades Sanofi (NASDAQ:SNY) to Hold

Key Points

• Wall Street Zen downgraded Sanofi from “Buy” to “Hold,” while MarketBeat’s broader analyst consensus is also “Hold” with a $49.50 target price.
• Sanofi reported quarterly revenue of $13.36 billion, up 16% year over year, but EPS fell to $2.41 from $3.24 in the prior-year quarter; shares opened at $39.92, near their 52-week low.
• Sanofi and Regeneron expanded their immunology alliance with four next-generation antibodies, involving a potential $8 billion total deal value; Sanofi will pay $1 billion upfront and share development costs and future profits.

Sanofi (NASDAQ:SNY - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

A number of other brokerages have also recently issued reports on SNY. Weiss Ratings cut shares of Sanofi from a "hold (c-)" rating to a "sell (d)" rating in a research note on Monday, August 3rd. Morgan Stanley set a $49.00 target price on shares of Sanofi in a research note on Wednesday, July 8th. HSBC reaffirmed a "buy" rating on shares of Sanofi in a report on Thursday, September 10th. Finally, Royal Bank Of Canada began coverage on Sanofi in a report on Tuesday, September 8th. They set a "sector perform" rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Sanofi presently has an average rating of "Hold" and a consensus target price of $49.50.

Sanofi Stock Down 1.8%

NASDAQ SNY opened at $39.92 on Friday. Sanofi has a 52 week low of $39.50 and a 52 week high of $52.68. The company has a quick ratio of 0.64, a current ratio of 0.99 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $96.78 billion, a P/E ratio of 20.90, a price-to-earnings-growth ratio of 1.22 and a beta of 0.33. The stock's 50-day moving average price is $43.41 and its 200-day moving average price is $44.15.

Sanofi (NASDAQ:SNY - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $2.41 earnings per share (EPS) for the quarter. Sanofi had a return on equity of 14.19% and a net margin of 8.66%.The company had revenue of $13.36 billion during the quarter. During the same quarter last year, the firm posted $3.24 earnings per share. The company's revenue was up 16.0% compared to the same quarter last year. On average, equities research analysts predict that Sanofi will post 5.07 earnings per share for the current year.

Hedge Funds Weigh In On Sanofi

Several hedge funds have recently modified their holdings of the stock. Capital Research Global Investors purchased a new position in shares of Sanofi in the 4th quarter worth approximately $79,960,000. Manning & Napier Advisors LLC increased its position in Sanofi by 728,134.8% during the first quarter. Manning & Napier Advisors LLC now owns 1,194,305 shares of the company's stock valued at $57,542,000 after acquiring an additional 1,194,141 shares during the last quarter. Franklin Resources Inc. raised its stake in shares of Sanofi by 29.7% in the fourth quarter. Franklin Resources Inc. now owns 5,100,097 shares of the company's stock valued at $247,151,000 after acquiring an additional 1,168,339 shares during the period. Bank of America Corp DE raised its stake in shares of Sanofi by 11.0% in the first quarter. Bank of America Corp DE now owns 9,484,350 shares of the company's stock valued at $456,956,000 after acquiring an additional 940,342 shares during the period. Finally, Regal Partners Ltd lifted its holdings in shares of Sanofi by 33.2% in the 1st quarter. Regal Partners Ltd now owns 2,545,432 shares of the company's stock worth $122,639,000 after acquiring an additional 633,782 shares during the last quarter. Hedge funds and other institutional investors own 14.03% of the company's stock.

Key Stories Impacting Sanofi

Here are the key news stories impacting Sanofi this week:

• Positive Sentiment: Sanofi and Regeneron added four next-generation antibodies to their alliance, including the clinical-stage IL-13 antibody REGN20423, an IL-4xIL-13 bispecific antibody, and two preclinical candidates. The products are designed to offer longer dosing intervals and could broaden the companies’ immunology franchise beyond Dupixent. Sanofi and Regeneron expand global alliance press release
• Positive Sentiment: Regeneron will receive a $1 billion upfront payment, with as much as $7 billion in additional milestone payments, making the potential deal value up to $8 billion. Sanofi will gain access to assets that could support long-term revenue growth and help replenish its specialty-care pipeline. Sanofi Regeneron expand immunology alliance
• Neutral Sentiment: The companies will split development and commercialization costs equally and share future profits. This limits Sanofi’s financial burden compared with a wholly owned program, but the milestone payments are contingent on development and commercial success rather than guaranteed. Sanofi Regeneron alliance deal
• Negative Sentiment: The $1 billion upfront payment will pressure near-term cash flow, while the newly added antibodies remain at different stages of development. Clinical, regulatory and commercial setbacks could prevent Sanofi from realizing the agreement’s headline value. Sanofi Regeneron alliance worth up to $8 billion

About Sanofi

Sanofi is a France-based global healthcare company that develops, manufactures and markets prescription medicines, vaccines and consumer healthcare products. Its portfolio focuses on areas including immunology, rare diseases, vaccines, diabetes and other chronic conditions, as well as specialized treatments for selected neurological and inflammatory disorders.

The company is known for products such as Dupixent, a biologic used to treat several inflammatory conditions, and a broad range of vaccines marketed through its Sanofi Pasteur business.

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