Sanofi (ENXTPA:SAN) Valuation Check: Is There Long-Term Upside After Recent Share Pullback?

Sanofi (ENXTPA:SAN) shares edged lower in recent trading, drawing attention from investors tracking the pharmaceutical sector. While there was no headline-making news, many are watching to see how the company’s current valuation aligns with its long-term prospects.

See our latest analysis for Sanofi.

Sanofi’s share price has eased back to €87.58, reflecting a slight pullback in recent sessions. Despite pressure earlier this year, its 1-year total shareholder return remains positive at 0.25%. Over the past five years, the total return sits at 26.7%, showing that longer-term investors have still seen moderate gains even as short-term momentum cools.

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With shares lagging behind analyst price targets and long-term returns still present, the real question is whether Sanofi represents an undervalued play in the sector or if the market has already priced in its growth prospects.

Most Popular Narrative: 18% Undervalued

Sanofi's consensus narrative sets a fair value well above the latest closing price of €87.58, signaling notable upside if the forecasted performance materializes. This gap has investors asking what must go right to support the premium view embedded in analyst models.

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 (e.g., Dupixent, amlitelimab), position the company to capture higher demand for chronic disease treatments in a world with an aging population, supporting robust long-term sales growth and EPS upside.

Read the complete narrative.

Demanding narratives like this are built on bold earnings and margin expansion, with new launches and R&D wins offering massive potential reward. But which high-stakes financial assumptions drive the headline number? Uncover the story behind these bullish projections. Find out what could shift the share price in a heartbeat.

Result: Fair Value of €106.85 (UNDERVALUED)

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

However, execution setbacks in Sanofi's late-stage pipeline or intensified pricing pressures could quickly shift the outlook and temper current bullish expectations.

Find out about the key risks to this Sanofi narrative.

Build Your Own Sanofi Narrative

If you see the story differently or want to run the numbers your own way, it only takes a few minutes to craft a personalized outlook and share your perspective. 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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