On Tuesday, Berenberg raised its price target for Sanofi (SAN:FP) (NASDAQ: NASDAQ:) shares to EUR115.00, up from the previous EUR105.00, while maintaining a Buy rating on the stock. This adjustment reflects a positive outlook on the company’s recent advancements in research and development (R&D).
Sanofi has notably increased its R&D spending by over EUR700 million this year, which has led to a substantial rise in the number of patients being recruited for phase 3 trials, particularly in the fields of immunology and vaccines where the company holds a dominant position. The analyst noted that Sanofi has made significant strides in boosting R&D returns, going beyond the successful Dupixent drug, and has engaged in strategic deal-making to enhance its pipeline.
The company is expected to see a healthy 8% return on R&D investment for its 2024 pipeline, supported by a strong balance sheet that positions Sanofi well for potential future deals. The analyst encouraged such strategic moves, anticipating they would contribute to the company’s growth.
The revised price target suggests a roughly 10% upside potential for Sanofi’s stock. The positive sentiment from Berenberg comes amid a transformative period for Sanofi, as it continues to focus on expanding and improving its R&D efforts to drive future success.
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