Sanofi upgraded to “overweight” as Morgan Stanley sees €2 bln amlitelimab boost
Investing.com -- Morgan Stanley has upgraded Sanofi (EPA:SASY) to “overweight” from “equal-weight,” raising its price target to €100 per share, in a note dated Monday.
The shift comes after clarity on amlitelimab, Sanofi’s OX40L antibody for atopic dermatitis, which analysts described as a “clearing event” for the stock.
While amlitelimab did not surpass Dupixent in efficacy, trial results showed consistent absolute benefits on key endpoints such as EASI-75 and vIGA-AD.
The drug also demonstrated advantages in dosing convenience and durability of effect, with no plateau at 24 weeks.
Analysts said that “visibility on amlitelimab efficacy suggests a ~€2bn+ peak revenue opportunity is now achievable,” mostly in second-line use, with potential upside if longer-term data confirm advantages over Dupixent.
Further results from the OCEANA program are expected in 2026, with the ESTUARY trial seen as a critical test for long-term efficacy.
The upgrade reflects expectations of renewed earnings momentum. Morgan Stanley forecasts Sanofi’s earnings to grow at an 8% compound annual rate between 2025 and 2028, compared with 7% for peers.
Operating margins in 2026 are projected to expand to 29.6% from 29.1% in 2025, supported by sales momentum, divestment income, and stronger-than-expected royalties from Alnylam’s Amvuttra.
Analysts noted that “margin fears as overdone, with Amvuttra sales providing a stronger-than-expected operating profit tailwind, albeit potentially short-lived.” The royalties could reach as much as €1.8 billion at peak.
Valuation also factored into the upgrade. Sanofi currently trades at about 10 times its estimated 2025 earnings, representing a discount of roughly 32% to large-cap European pharmaceutical peers.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
“With the overhang lifted, the reset in valuation presents an attractive entry point to gain access to well assured near-term earnings momentum,” the brokerage said.
With SASY making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging.
InvestingPro's advanced AI algorithms have analyzed SASY alongside thousands of other stocks to uncover hidden gems.
These undervalued stocks, potentially including SASY, could offer substantial returns as the market corrects. In 2025 alone, our AI identified several undervalued stocks that later surged by 50% or more.
Is SASY poised for similar growth? Don't miss the opportunity to find out.
