Sanofi (ENXTPA:SAN): Assessing Valuation After Recent Share Price Rebound

Sanofi (ENXTPA:SAN) shares have seen a steady rise over the past month, up by 8%. This has sparked fresh interest among investors. Many are now looking closer at what might be driving this momentum and what it could mean for future performance.

See our latest analysis for Sanofi.

While Sanofi's latest 1-month share price return of 8% has caught attention, it stands out even more when set against a tough year, with the total shareholder return down 8% over the past twelve months. Still, strong three- and five-year total returns of 17% and 34% respectively underline that longer-term momentum remains intact. This suggests investors may be responding to improving sentiment after a bumpy start to the year.

If Sanofi's rebound has you thinking bigger, this is a great opportunity to discover other healthcare stocks making moves. See the full list for free.

With shares still trading at a notable discount to analyst targets and signs of improved financial performance, investors may ask whether Sanofi is currently undervalued or if markets are already factoring in future growth prospects.

Most Popular Narrative: 19.9% Undervalued

Sanofi’s most widely followed narrative places its fair value well above the latest closing price. This suggests analysts see significant upside from current levels. The discussion centers on how future growth drivers compare to ongoing risks in the sector.

Sanofi's ongoing focus on innovative product launches and its strong R&D pipeline, highlighted by accelerating investments, multiple Phase III readouts through 2026, and continued expansion of biologics (such as Dupixent and amlitelimab), position the company to capture higher demand for chronic disease treatments in a world with an aging population. This supports robust long-term sales growth and EPS upside.

Read the complete narrative.

Want to know the secret behind this bullish outlook? The fair value calculation hinges on a future profit margin boost and a lower earnings multiple, both of which create a surprising valuation twist. Find out which breakthrough forecast lifts this stock well above today’s price.

Result: Fair Value of €108.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, such as pricing pressure in vaccines and the uncertainty of pipeline success. These factors could quickly challenge today’s optimistic outlook.

Find out about the key risks to this Sanofi narrative.

Build Your Own Sanofi Narrative

If the mainstream view doesn't match your take or you prefer your own analysis, it's easy to craft your perspective in just minutes with our tools. Do it your way

A good starting point is our analysis highlighting 6 key rewards investors are optimistic about regarding Sanofi.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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