Sanofi Analyst Recommends Caution As Stock Continues Golden Run After Q3-Print

ICICI Direct analysts noted that Sanofi’s Q4CY22 numbers were weak in-line with their expectations.

The Sanofi Analyst: The Siddhant Khandekar-led analyst team at ICICI Direct maintained its ‘hold’ rating for the stock with a target price of ₹6,270.

The Sanofi Thesis: ICICI Direct noted that the company’s numbers dropped sequentially in line with its expectation as its growth momentum is yet to reach pre-Covid level.

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The analysts highlighted that the company’s revenue from operations fell around 2.9% sequentially to ₹672 crore. The company’s EBITDA margin also contracted 145 bps quarter-over-quarter to 24.8%. The firm also noted that the company “has underperformed the Indian Pharmaceutical Market due to below-par performances of some tail brands.”

However, analysts noted that the company has a strong balance sheet and a good dividend payout track record. The firm said that it waits for visible growth triggers in power brands portfolio especially in the anti-diabetic and cardiovascular therapies as it maintained its hold rating for the stock.

Price Action: Sanofi shares were up 0.93% at ₹5,916.75 as the markets opened for business on Tuesday.

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Posted In: healthcareICICI DirectpharmaPharmaceuticalQ3FY23Sanofi