(News Bulletin 247) – Sanofi shares posted the biggest rise in the CAC 40 on the Paris Stock Exchange on Tuesday morning, while Berenberg considered the stock to be undervalued despite a pipeline that was improving.
Around 11:30 a.m., the stock rose by 1.2%, while at the same time the CAC 40 index fell by 0.5%.
In a note, Berenberg recalls that the pharmaceutical group has posted a discounted stock market valuation for more than ten years now due to its inability to build a portfolio of drug projects deemed attractive.
The analyst, who recalls that research and development (R&D) efforts take time to materialize, explains that he nevertheless observed the first signs of improvement in the profitability of the laboratory’s R&D investments.
In view of the depressed valuation of the title, Berenberg believes that the risk of disappointment relating to the ‘pipeline’ is now limited while any good surprises are, from his point of view, not integrated into the course.
In this context, the intermediary raised his advice on the stock from ‘hold’ to ‘buy’ with a target price raised from 107 to 115 euros.
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