Berenberg raised its price target on Tuesday Sanofi (SAN:FP) (NASDAQ: NASDAQ: ) shares rose to EUR 115.00 from EUR 105.00 previously, while maintaining a buy rating on the stock. This revision reflects a positive view of the company’s recent achievements in research and development (R&D).
Sanofi increased R&D spending by more than 700 million euros this year, which led to a significant increase in the number of patients recruited for phase 3 trials, particularly in the company’s dominant areas of immunology and vaccines. The analyst noted that Sanofi has made significant progress in increasing R&D revenue and engaged in strategic deals to improve its pipeline beyond its successful drug Dupixent.
The company is expected to generate a healthy 8% return on R&D investment for the 2024 pipeline, supported by a strong balance sheet that positions Sanofi well for future deals. The analyst encouraged such strategic moves, expecting them to contribute to the company’s growth.
The revised price target suggests an upside potential of about 10% for Sanofi’s stock. The positive sentiment from Berenberg comes at a time of transformation for Sanofi as it continues to focus on expanding and improving its R&D efforts to ensure future success.
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