Sanofi (SNY) Downgraded by Zacks Investment Research to Strong Sell
Zacks Investment Research cut shares of Sanofi (NYSE:SNY) from a hold rating to a strong sell rating in a research report released on Friday.
According to Zacks, “Sanofi’s Diabetes franchise is under significant pressure with key product, Lantus facing increasing competitive pressure at the payor level and the presence of biosimilar competition in several European markets and Japan. Sanofi’s outlook for its Diabetes franchise is also bleak due to a tough U.S. payer environment. At the Q2 conference call, management warned that US diabetes sales will decline faster in the second half. Other headwinds include generic competition and slower-than-expected uptake of new products like Praluent. Sanofi’s shares have underperformed the industry in the past three months. However, Sanofi's focus on streamlining its business and pursuing business development deals is encouraging. Further, new drugs like Aubagio and Lemtrada are likely to continue doing well. Estimates have remained stable ahead of Q3 earnings release. Sanofi has a positive record of earnings surprises in recent quarters.”
Several other brokerages have also weighed in on SNY. BidaskClub lowered Sanofi from a buy rating to a hold rating in a research report on Friday, June 9th. HSBC Holdings plc raised Sanofi from a reduce rating to a hold rating in a research report on Wednesday, August 30th. J P Morgan Chase & Co reaffirmed a neutral rating on shares of Sanofi in a research report on Friday, September 15th. Argus reaffirmed a buy rating and issued a $55.00 target price on shares of Sanofi in a research report on Friday, September 1st. Finally, Cowen and Company reissued a market perform rating and set a $52.00 price target (up from $46.00) on shares of Sanofi in a report on Tuesday, August 1st. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and four have issued a buy rating to the company. Sanofi presently has an average rating of Hold and a consensus target price of $53.50.
Sanofi (NYSE SNY) opened at 50.42 on Friday. The stock has a market capitalization of $126.63 billion, a price-to-earnings ratio of 11.71 and a beta of 0.87. Sanofi has a 52-week low of $36.81 and a 52-week high of $50.65. The company has a 50-day moving average of $49.24 and a 200-day moving average of $48.05.
Sanofi (NYSE:SNY) last issued its earnings results on Monday, July 31st. The company reported $0.74 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.74. Sanofi had a return on equity of 25.34% and a net margin of 25.89%. The firm had revenue of $8.66 billion for the quarter, compared to analyst estimates of $8.71 billion. Sanofi’s quarterly revenue was down 2.3% compared to the same quarter last year. Equities research analysts expect that Sanofi will post $3.33 EPS for the current year.
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In other Sanofi news, major shareholder Sanofi purchased 60,595 shares of the stock in a transaction dated Wednesday, August 23rd. The shares were bought at an average cost of $478.98 per share, with a total value of $29,023,793.10. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 1.00% of the stock is currently owned by company insiders.
Hedge funds have recently made changes to their positions in the stock. Harbour Capital Advisors LLC bought a new position in Sanofi during the first quarter valued at about $113,000. Parallel Advisors LLC boosted its stake in Sanofi by 42.5% during the second quarter. Parallel Advisors LLC now owns 2,934 shares of the company’s stock valued at $139,000 after buying an additional 875 shares in the last quarter. YorkBridge Wealth Partners LLC boosted its stake in Sanofi by 33.7% during the second quarter. YorkBridge Wealth Partners LLC now owns 3,076 shares of the company’s stock valued at $147,000 after buying an additional 776 shares in the last quarter. Bronfman E.L. Rothschild L.P. boosted its stake in Sanofi by 142.8% during the second quarter. Bronfman E.L. Rothschild L.P. now owns 3,567 shares of the company’s stock valued at $171,000 after buying an additional 2,098 shares in the last quarter. Finally, Toronto Dominion Bank boosted its stake in Sanofi by 4.6% during the second quarter. Toronto Dominion Bank now owns 4,054 shares of the company’s stock valued at $195,000 after buying an additional 180 shares in the last quarter. 9.33% of the stock is owned by institutional investors and hedge funds.
Sanofi Company Profile
Sanofi is a healthcare company, focused on patient needs and engaged in the research, development, manufacture and marketing of therapeutic solutions. The Company’s segments are Pharmaceuticals, Human Vaccines (Vaccines), and Other. The Pharmaceuticals segment comprises the commercial operations of various franchises, including Speciality Care (Rare Diseases, Multiple Sclerosis, and Oncology), Diabetes and Cardiovascular, Established Prescription Products, Consumer Healthcare and Generics, and research and development, production and marketing activities for all of the Company’s pharmaceuticals operations.
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