20 Oct

Sanofi Stock: Performance in 3Q17

WRITTEN BY Mike Benson

A look at Sanofi

Headquartered in Paris, Sanofi’s (SNY) business is segregated into the following five business units:

  • Sanofi Genzyme – the specialty care business including rare diseases and oncology
  • Diabetes and Cardiovascular
  • Generic Medicines and Emerging Markets – includes pharmaceutical sales for emerging markets
  • Consumer Healthcare
  • Sanofi Pasteur – human vaccines

The company reports its financial results in euros.

Sanofi Stock: Performance in 3Q17

The above chart shows revenues and EPS (earnings per share) for Sanofi over the last eight quarters and estimates for 3Q17.

Stock performance

Sanofi stock has risen ~3.9% in 3Q17. It has risen 22.5% year-to-date as of October 20, 2017.

Analyst recommendations

Wall Street analysts estimate that the stock has the potential to rise ~10.0% over the next 12 months. Analyst recommendations show a 12-month target price of $55 per share compared to the last price of $50.02 per share on October 19, 2017.

There are three analysts tracking Sanofi’s ADR (American depositary receipts). Two analysts suggest a “buy,” and one recommends a “hold.” There are 28 analysts tracking Sanofi stock. Ten of them recommend a “buy,” 15 recommend a “hold,” and three recommend a “sell.” The consensus rating for Sanofi stands at 2.68, which represents a “moderate buy” for value investors.

Analysts’ revenue estimates

Sanofi’s revenues are mainly driven by strong performances for Genzyme, Consumer Healthcare, and Sanofi Pasteur.

Wall Street analysts estimate revenues of 9.5 billion euros in 3Q17, a ~2.0% fall compared to 3Q16, and EPS of 1.73 euros.

To divest the company-specific risks, investors can consider ETFs such as the PowerShares International Dividend Achievers ETF (PID), which holds 1.3% of its total assets in Sanofi (SNY). PID also holds 1.3% in Novo Nordisk (NVO), 1.4% in Novartis AG (NVS), and 1.0% in Teva Pharmaceutical Industries (TEVA).

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