Sanofi (ENXTPA:SAN) Valuation Check After Recent 2% Share Price Rebound

Sanofi (ENXTPA:SAN) shares have quietly bounced about 2% over the past week, even though they are still down for the year, drawing attention from investors looking for more resilient pharma exposure.

See our latest analysis for Sanofi.

That recent 7 day share price return of 2.21 percent only slightly offsets a year to date share price decline of 12.66 percent. This suggests sentiment is stabilising rather than surging, despite steady earnings growth and pipeline progress.

If Sanofi has you rethinking your healthcare exposure, it might be a good moment to explore other healthcare stocks that combine defensive traits with solid growth potential.

With the shares trading well below analyst targets despite mid single digit revenue and double digit profit growth, the key question now is whether Sanofi is genuinely undervalued or if the market is already pricing in future gains.

Most Popular Narrative Narrative: 21.7% Undervalued

With Sanofi last closing at €82.38 against a narrative fair value of €105.20, the valuation hinges on how convincingly late stage assets convert into cash flows.

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. (Revenue, EPS)

Read the complete narrative.

Curious how steady mid single digit growth, rising margins, and a lower future earnings multiple still justify a higher fair value than today? See what holds it together.

Result: Fair Value of €105.20 (UNDERVALUED)

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

However, investors should watch for pipeline setbacks and intensifying pricing pressure, as either could quickly erode confidence in that undervaluation narrative.

Find out about the key risks to this Sanofi narrative.

Build Your Own Sanofi Narrative

If you see things differently or want to dig into the numbers yourself, you can build a personalised Sanofi story in just a few minutes: 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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