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Sanofi stock forecast: What’s next for SNY and SAN?

14:29, 8 February 2022

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Berlin / Germany - September 22, 2019: Sanofi Germany - Berlin branch - Sanofi is a French multinational pharmaceutical company headquartered in Paris, France
Sanofi stock forecast: What’s next for SNY and SAN? – Photo: Shutterstock

French pharmaceutical firm Sanofi saw its SNY (Nasdaq) and SAN (Euronext) stock prices trading higher on Monday after it announced rising sales and profits for the fourth-quarter and full-year 2021 on Friday. The company, which has unveiled new corporate branding, expects its profits to rise again in 2022.

Sanofi reported strong sales of its Dupixent treatment for dermatitis and asthma, even as its Covid-19 vaccine being developed with GlaxoSmithKline (GSK) continued to be delayed.

So is Sanofi stock a buy, sell or hold at this time? 

In this article, we look at the company’s recent earnings results and some of the latest Sanofi stock predictions from analysts and forecasters.

Sanofi expects 2022 profit growth

Sanofi reported a 6.5% increase in its fourth-quarter net sales to €9.99bn ($11.30bn, £8.34bn) and a 13.3% increase in business net income to €1.73bn. Sales were up by 4.1% at constant exchange rates, with net income up by 10.2%. 

The company’s Specialty Care business advanced to its largest unit by sales, growing by 21.3% to €3.49bn, driven by a 53.1% increase in Dupixent sales. Its vaccines business contracted by 6.5% despite strong European sales, reflecting a fall in US influenza vaccination rates and record shipments during the third quarter.

For 2021 as a whole, Sanofi reported a 4.8% increase in net sales to €37.76bn and an 11.8% increase in business net income to €8.2bn. Full-year sales grew by 7.1% at constant exchange rates, with business net income up by 15.5%. The growth in sales was driven by a 52.7% rise in Dupixent sales to €5.25bn and a 6.8% increase in vaccine sales to €6.32bn.

During the fourth quarter exchange rate movements had a positive effect on Sanofi’s sales revenues, primarily due to movement in the value of the US dollar. But for 2021 overall, exchange rate movements had a negative effect of 2.3 percentage points, the company reported.

Sanofi’s business earnings per share (EPS) rose by 13.1% to €1.38 in the fourth quarter and by 11.9% to €6.56 in 2021. At constant exchange rates, business EPS rose by 9.8% in the fourth quarter and 15.5% in 2021. The company expects its business EPS to grow in the low double-digit range at constant exchange rates. “Applying average January 2022 exchange rates, the positive currency impact on 2022 business EPS is estimated to be between +2% to +3%,” the company said.

“Last quarter, Sanofi achieved a new milestone, a first in recent years, by moving seven molecules into Phase 1 and seven pipeline programs into Phase 2 trials, showcasing our success in rapidly advancing potentially transformative medicines. We further strengthened our R&D capabilities with a series of value creating M&A transactions in 2021,” Sanofi CEO Paul Hudson commented. 

“Our excellent financial performance validates our ability to increase profitability through improved product mix, supported by expense management and the reinvestment of savings behind our growth drivers, all of which puts us on a trajectory to achieving our 2022 financial targets.”

Sanofi is using its worldwide manufacturing capacity for the supply of three authorised Covid-19 vaccines: BioNTech/Pfizer, Moderna and Johnson & Johnson, with manufacturing teams in France, Germany and the US having released 100 million doses by the end of December 2021.

Sanofi is developing its own vaccine with GSK and expects to release results from its Phase 3 trial during the current quarter. “Sanofi intends to file booster data with regulatory authorities following the Phase 3 results,” the company said.

On 3 February, Sanofi announced its Sanofi Pasteur and Sanofi Genzyme business units, which are focused on vaccines and specialty care, respectively, as well as all other brands it has acquired, will be brought under the singular Sanofi name and brand. The move forms part of the company's transformation strategy that got underway in 2019.

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Sanofi stock price rebounds post earnings

There are Sanofi stock market listings both in Europe and in the US. SAN shares are traded on the Euronext Paris exchange in France, with SNY shares traded on the Nasdaq Stock Exchange in the US. 

The Sanofi historical stock price on the Euronext fell by 13% during 2020 as the stock struggled to rebound from the March 2020 selloff at the start of the Covid-19 pandemic. But it rose by 12.5% in 2021 as its sales recovered. 

The stock price on the Euronext has been in an upward trend since mid-December and has risen by 4.7% year-to-date, from €89.33 per share at the start of January to €93.53 per share at the close on 7 January. The stock had closed at €90.29 on 4 February.

The US-listed stock has gained 5.09% year-to-date, rising from $50.69 per share at the start of January to the $53 per share level on 7 February.

SAN vs SNY share price performance, 5-year chart

What is the outlook for the Sanofi stock future price? Let’s look at some of the most recent price forecasts.

Sanofi (SNY) stock forecast: A buy, sell or hold?

The median 12-month Sanofi stock price target from nine analysts that have issued a rating for the Euronext listing is €105 per share, with a low estimate of €80 per share and a high of €124 per share, according to MarketBeat. On 26 January, JPMorgan Chase set a price target of €105, while on 27 January, analysts at Goldman Sachs set the high of €124 per share and on 28 January, Deutsche Bank set the low price target of €80 per share.

For the US listing, the median SNY stock forecast from 20 analysts issuing a price target is $63.79 per share, according to CNN Business, ranging between $45.77 per share at the low end and $69.90 at the high end.

Technical Sanofi stock analysis from TradingView showed the stock was a buy at the time of writing, with the simple (SMA) and exponential moving (EMA) averages as well as the moving average convergence divergence (MACD) showing bullish signals.

Online forecasting service WalletInvestor was bullish in its Sanofi share price forecast, predicting that the Euronext-listed stock could trend higher to €97.68 per share by the end of 2022 and reach €114.293 per share by the end of 2025. The site’s algorithm predicted that the Sanofi stock value could reach €119.981 in five years’ time, indicating that the stock is likely to trade higher by 2030.

When looking at price forecasts you should keep in mind that analysts and algorithm-based forecasters can and do get their predictions wrong.

We recommend that you always do your own research, and consider the latest market trends, Sanofi stock news, technical and fundamental analysis, and expert opinion before making any investment decision. And never invest more than you can afford to lose.

FAQs

Is Sanofi stock a good buy?

Whether Sanofi is a suitable investment for your portfolio depends on your personal circumstances and risk tolerance, among other factors. You should do your own research into the company’s performance and evaluate the level of risk you are prepared to accept before investing.

Why has the Sanofi stock price been going up?

Sanofi stock has been rising as the company reported higher 2021 sales and profits and expectations of a continued rise in profits in 2022.

Will Sanofi stock go up or down?

At the time of writing, some analysts like JPMorgan Chase (JPM) and Goldman Sachs (GS) expect the Sanofi share price to rise in the next year, while Deutsche Bank (DB) expects the share price to slide lower. Over the long term, WalletInvestor expected the price to trend higher in the next five years.

But it is important to keep in mind that stock prices are highly volatile and difficult to predict. Forecasters can and do get their predictions wrong. You should do your own research to make informed trading decisions. Keep in mind that past performance is no guarantee of future returns.

Is Sanofi stock profitable?

Whether Sanofi stock is a profitable investment depends on the entry point of a position and how long you hold the investment, as well as the movement of the share price over time, among a number of other factors. You should form your own view of the stock and price at which you want to take a position if you decide to make an investment.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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