Morgan Stanley Resumes Sanofi (SNY) Coverage, Assigns Equal Weight Rating

On June 2, Morgan Stanley analyst Sarita Kapila resumed coverage of Sanofi (NASDAQ:SNY), assigning an Equal Weight rating and setting a $56 price target. While acknowledging the stock’s attractive valuation, the firm expressed caution around the company’s ability to close the gap with peers without more visible progress in key areas.

A chemist examining a beaker of colored liquid and advanced pharmaceuticals.

Sanofi’s earnings growth outlook from 2025 through 2028 remains broadly in line with sector averages. However, Kapila noted that investor skepticism may linger due to questions around margin expansion and the pace of pipeline development. The stock currently trades at a discount, and according to Morgan Stanley, that discount could endure unless the company demonstrates clearer momentum on the innovation front.

The firm emphasized that Sanofi’s investment appeal hinges largely on successful execution in research and development. While Sanofi (NASDAQ:SNY) has taken steps to reshape its pipeline and focus on high-value therapeutic areas, Kapila described the situation as a “show me story,” where investor confidence will likely depend on tangible clinical and regulatory milestones. Despite solid fundamentals and a low valuation, the lack of near-term catalysts may limit upside.

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