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.
“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.
Source :
https://www.investing.com/news/stock-market-news/sanofi-upgraded-to-overweight-as-morgan-stanley-sees-2-bln-amlitelimab-boost-4228058
