Berenberg Bank Remains a Buy on Sanofi (SNY)

Sanofi (NASDAQ:SNY) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 20, Berenberg Bank reiterated a Buy rating on the stock with a $62 price target. Earlier on January 16, UBS downgraded Sanofi (SAN:Euronext Paris Listing) from Buy to Neutral and lowered the price target from €105 to €88.

​Analysts at UBS noted that the cautious rating and lower price target are mainly due to the company’s recent clinical trial failures. The firm finds Sanofi’s pipeline to be weak to offset the loss of Dupixent, one of its blockbuster drugs. UBS noted that the company’s inability to replace its pipeline with a better drug suggests a strategic risk. As a result, the firm lowered its mid-term earnings estimates by 8% and also reduced the core earnings estimates by 8.1% for 2027-2030.

​The rating came after Sanofi’s Tolebrutinib failed to meet its primary endpoints in treating progressive multiple sclerosis. Moreover, the FDA also delayed approval for the indication due to the risk of serious liver injury. UBS analysts note that meaningful M&A might only be the realistic option for the company.

Sanofi (NASDAQ:SNY) is a global healthcare company engaged in the research, development, manufacture, and marketing of therapeutic solutions across pharmaceuticals, vaccines, and consumer healthcare.

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Disclosure: None. This article is originally published at Insider Monkey.