Is SNY a good stock to buy? We came across a bullish thesis on Sanofi on r/ValueInvesting by stefanliemawan. In this article, we will summarize the bulls’ thesis on SNY. Sanofi’s share was trading at $42.38 as of June 18th. SNY’s trailing and forward P/E were 18.43 and 8.44 respectively according to Yahoo Finance.
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Sanofi engages in the research, development, manufacture, and marketing of therapeutic solutions. SNY is presented as a compelling combination of a defensive pharmaceutical company and a potential turnaround opportunity, with the market continuing to discount the business despite its strong portfolio, growing dividend, and ownership of one of the world’s most successful drugs. The company generated €47 billion in revenue last year, including approximately €19 billion from Dupixent, the blockbuster therapy it co-developed with Regeneron.
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Investor concerns are largely centered on Dupixent’s loss of U.S. exclusivity in March 2031, creating fears of a future patent cliff and contributing to Sanofi’s modest valuation of roughly 9x forward earnings. These concerns have been amplified by years of uneven earnings growth and a history of expensive acquisitions aimed at strengthening the company’s pipeline. However, the bullish case argues that the market may be underestimating Sanofi’s ability to navigate the post-Dupixent era.
Several newer products, including ALTUVIIO, Ayvakit, and Sarclisa, are growing rapidly and are expected to generate a combined €3 billion in revenue this year, providing meaningful diversification and multiple years of runway before Dupixent faces generic competition. Management also plans to continue expanding Dupixent into additional indications and use cases, with a strategy that could extend the franchise’s relevance well beyond 2031 and potentially into the 2040s.
Another important catalyst is the company’s new CEO, whose previous leadership at Merck KGaA was associated with a significant improvement in profitability. The investment thesis rests on the belief that if investors gain confidence in Sanofi’s pipeline and long-term earnings power beyond Dupixent, the stock could experience a meaningful rerating. While waiting for that outcome, shareholders are compensated with a dividend yield of roughly 5%, creating an attractive risk-reward profile supported by both income and potential upside.
Previously, we covered a bullish thesis on Sanofi (SNY) by Business Model Mastery in May 2025, which highlighted the company’s biologics fortress built around Dupixent, its integrated manufacturing network, and expanding immunology and vaccine franchises. SNY’s stock price has depreciated by approximately 17.00% since our coverage. stefanliemawan shares a similar view but emphasizes on Sanofi’s turnaround potential, driven by pipeline diversification, new leadership, and a possible rerating as concerns over the post-Dupixent era ease.
Sanofi is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held SNY at the end of the first quarter which was 32 in the previous quarter. While we acknowledge the risk and potential of SNY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNY and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
