QQQ
+ 0.00
387.12
+ 0%
BTC/USD
-760.89
56423.18
-1.33%
DIA
+ 0.00
340.46
+ 0%
SPY
+ 0.04
450.46
+ 0.01%
TLT
+ 0.00
152.34
+ 0%
GLD
+ 0.05
166.11
+ 0.03%

Analyst Upgrades Sanofi On COVID-19 Vaccine Optimism

September 27, 2021 12:01 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Analyst Upgrades Sanofi On COVID-19 Vaccine Optimism

Sanofi SA (NASDAQ:SNY) shares traded higher by 0.4% on Monday after the company scored an analyst upgrade.

The Analyst: SVB Leerink analyst Geoffrey Porges upgraded Sanofi from Market Perform to Outperform and raised his price target per U.S. ADR from $69.61 to $71.37.

Related Link: Cigna Has Limited Visibility, No Bullish Catalysts, BofA Says In Double Downgrade

The Thesis: In the upgrade note, Porges said Sanofi’s Dupixent monoclonal antibody used for allergic diseases is one of the pharma industry’s biggest blockbusters. However, Porges raised his target for the stock based on expectations for Sanofi’s Phase III test results on its recombinant COVID-19 vaccine using a GlaxoSmithKline plc (NYSE:GSK) protein adjuvant. He is projecting a 65% rate of success for the vaccine.

“We believe amcenestrant and developments in COVID vaccine programs (both mRNA and recombinant protein) will be significant catalysts for the stock later this year and expect the stock to easily recover to its recent highs, and then continue to outperform most of its peers over the next few quarters,” Porges said.

In addition, in anticipation of the closing of the Kadmon acquisition, Porges has added Rezurock for chronic graft-versus-host disease and other indications to his Sanofi model. He estimates peak sales of more than $700 million.

Porges said Sanofi management has made better strategic decisions in recent years and has set the company up with a strong pipeline of several potential quality drug candidates. In the meantime, Sanofi’s financials are slowly improving, and Porges is anticipating significant earnings and revenue beats.

Benzinga’s Take: Strong Dupixent growth, a solid and growing drug pipeline and a new management team focused on improving the balance sheet make Sanofi appear to be an excellent investment.

However, one bad batch of data can completely change the thesis for pharma stocks, so investors should proceed with caution.

Image by ronstik from Pixabay 

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.


Related Articles

3 Pharma Stocks Morgan Stanley Says Will Be Omicron Variant Beneficiaries

3 Pharma Stocks Morgan Stanley Says Will Be Omicron Variant Beneficiaries

The news of a new variant of the coronavirus Friday sent financial markets into a tailspin. The adversity could present an opportunity for a handful of biopharma stocks, according to a Morgan Stanley analyst.  read more
Pfizer's COVID-19 Franchise Could Push Revenue Past $100B In 2022: Analyst

Pfizer's COVID-19 Franchise Could Push Revenue Past $100B In 2022: Analyst

Pfizer, Inc. read more
Breaking Down Novavax's Coronavirus Vaccine Data: 2 Analysts Takes

Breaking Down Novavax's Coronavirus Vaccine Data: 2 Analysts Takes

Novavax, Inc. (NASDAQ: NVAX) shares were roaring higher Friday after the company reported topline results from the late-stage trial of its coronavirus vaccine candidate in the U.K. read more
4 Analysts On Why The Rumored AstraZeneca-Gilead Deal Is Unlikely To Materialize

4 Analysts On Why The Rumored AstraZeneca-Gilead Deal Is Unlikely To Materialize

The weekend was abuzz with rumors of U.K. read more