BofA Securities Downgrades Sanofi (SNY) to Neutral, 'CEO change brings another transition. Limited catalysts'

BofA Securities analyst Graham Perry downgraded Sanofi (NASDAQ: SNY) from Buy to Neutral with a price target of $54.50 (from $59.16).

The analyst comments "Sanofi has announced Paul Hudson leaving 17th Feb and to be succeeded by Belén Garijo, prior CEO Merck KGaA. While management change has been anticipated by investors as a potential positive catalyst, we believe investors will now be nervous ahead of another period of rebuild and transition; with limited pipeline catalysts in FY26 and a new period of uncertainty we downgrade to Neutral. In our opinion, Garijo had a decent track record at Merck but no transformational deal and questionable R&D progress with evobrutinib & xevinapant high profile fails, and questions over SWTX deal with comp. (Immunome) on horizon. Remains unclear how Garijo will address R&D transformation that we believe is still needed at SAN. We acknowledge shares look cheap but flag limited catalysts & CEO change adds uncertainty. We lower PO to Eur92/$54.50 (from Eur102/$59.16) on target c10x 27E PE (from prior 12x) reflecting uncertainty in outlook from here. Neutral"

For an analyst ratings summary and ratings history on Sanofi click here. For more ratings news on Sanofi click here.

Shares of Sanofi closed at $49.25 yesterday.

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