Sanofi: Liberum raises target price

(CercleFinance.com) - Liberum has reinstated its "buy" recommendation on the Sanofi share and has raised its corresponding target price from 82 euros to 90 euros, noting that the stock has underperformed its sector by 10% this year, despite solid first-quarter results.


The broker welcomes the recent appointments of external candidates to key positions in the group, seeing this as a message that "Sanofi intends to change for the better, with improved focus in R&D combined with greater operational efficiency".

"We forecast 5 year EPS growth of 8%, in line with the sector, but Sanofi now trades at 13.2x 2019 earnings, a 20% discount to peers," the broker continues.



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