Stockchase Insights Sanofi-Aventis SNY-N RISKY Sep 04, 2024

Stockchase Research Editor: Michael O'Reilly SNY is a French biotech that produces a wide range of vaccines and pharmaceuticals by prescription and is reiterated as a TOP PICK. Its new management team has improved its internal drug pipeline and expanded margins and EPS since joining in 2018. It beat recent analyst earnings expectations by 16% and is managing a 25% ROE. It pays an annual dividend that should be announced in the next couple of months with a yield backed by a payout ratio under 50% of cash flow. We recommend trailing up the stop (from $45) to $47, looking towards an initial target of $64.50 -- 27% upside. Yield 3.85% (Analysts’ price target is $64.12)

(A Top Pick Dec 28/21, Up 5.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SNY is progressing well. We now recommend trailing up the stop (from $47) to $49.

Stockchase Research Editor: Michael O’Reilly We again reiterate, SNY (a top French biotech that produces a wide range of vaccines and pharmaceuticals by prescription), as a TOP PICK. It has announced a collaboration with a smaller developer that could be a game changer for its cancer related products. It recently beat recent analyst earnings expectations by 16% and is managing a 24% ROE. It pays an annual dividend backed by a payout ratio under 50% of cash flow. We recommend keeping the stop tight at $49, looking towards an initial target of $63 -- potential 22% upside. Yield 3.7% (Analysts’ price target is $63.00)

Stockchase Research Editor: Michael O'Reilly With FDA approval to expand use of one of its key anti-inflammatory treatments, we again reiterate, SNY as a TOP PICK. The drug is expected to generate annual sales over $13 billion -- 30% more than previously estimated. The company is seeking further approval for use with COPD patients. It pays an annual dividend backed by a payout ratio under 45% of cash flow. We continue to recommend a stop loss at $49, looking towards an initial target of $71 -- potential 27% upside. Yield 3.14% (Analysts’ price target is $70.75)

(A Top Pick May 26/22, Down 12%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SNY has triggered its stop at $49. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 5.3%, when combined with previous buy recommendations.

Stockchase Research Editor: Michael O'Reilly

This french pharma company, developer of treatments for MS, myeloma and dermatitis (among many other products) is a TOP PICK.  It trades at 25x earnings, under 2x book value and supports a 27% ROE.  Cash reserves are being prudently used to reduce long term debt and the company is also buying back shares.  We recommend setting a stop-loss at $42, looking to achieve $58 -- upside potential of 18%.  Yield 4.2%

(Analysts’ price target is $57.50)

Stockchase Research Editor: Michael O'Reilly

We reiterate SNY as a TOP PICK.  Recently reported earnings showed sales growth for the third consecutive quarter that exceeded 10%.  Cash reserves are prudently being drawn down to retire debt and buy back shares.  It trades at 13x earnings, 1.6x book and supports a 25% ROE.  We recommend trailing up the stop (from $42) to $47, looking to achieve $64 -- upside potential of 20%.  Yield 2.7%

(Analysts’ price target is $64.00)