Sanofi Knee-Jerk Reaction ‘Overdone’ – Deutsche Bank
2022.08.12 19:06
Sanofi (SNY) Knee Jerk Reaction ‘Overdone’ – Deutsche Bank
By Sam Boughedda
Shares of Sanofi (NASDAQ:SNY) were upgraded to Hold from Sell with an unchanged EUR90 price target by a Deutsche Bank analyst on Friday.
Sanofi shares have tumbled in recent days on worries surrounding litigation around recalled heartburn drug Zantac.
The analyst described the fall on the Zantac news as a “knee-jerk” reaction, also stating it is “somewhat overdone.”
However, the analyst stated that the selloff doesn’t create an obvious buying opportunity due to other fundamental issues such as a lack of R&D, reliance on Dupixent along with other short-term and medium-term headwinds and risks.
Sanofi shares have gained 1.5% so far Friday.
Elsewhere, an SVB Securities analyst said the weakness in Sanofi shares presents a buying opportunity. The analyst also stated the Zantac risk is “overblown” as the company has low exposure to potential liability, given it marketed Zantac for fewer years than other firms.
