Sanofi Kept at Buy as Berenberg Notes 'Deep' Valuation Discount

04:47 AM EDT, 07/23/2026 (MT Newswires) -- Berenberg maintained its buy rating for Sanofi (SAN.PA), with a price target of 105 euros, noting "compelling" acquisitions are needed to narrow the "deep" valuation gap. "New CEO, Belén Garijo, must continue to drive Dupixent sales (to USD30bn) and [maximize] cash flows for reinvestment. Sanofi must create a launch portfolio with 2035 sales potential of EUR15bn. Resolution of the Regeneron collaboration is required urgently," the research firm said Wednesday. Ideally, analysts said deal-making targets are focused on commercial-stage assets. Otherwise, the pharmaceutical giant should focus on share buybacks and late-stage, launch-ready pipeline additions, Berenberg added. "We would like to see greater returns to shareholders. The dividend yield is at an all-time high of c6% versus 5-year low of c3% (we forecast 5% [per annum] growth). A buyback would signal that the shares are undervalued, EUR5bn would boost EPS by c5%," the note said. The research firm flagged that near-term catalysts are "limited," with key events including second-half filing for amlitelimab with 52-week Estuary data testing long-term efficacy, September phase 2b lunsekimig asthma results, and Garijo's initial remarks at second-quarter earnings on July 30.