Sanofi Shares Fall Midday After UBS Downgrade to Neutral
Sanofi's stock is down by 0.92% at 80.88 euros midday this Friday, January 16, affected by a double downgrade in analyst recommendations. UBS and Deutsche Bank have lowered their expectations for the French pharmaceutical giant, fueling concerns about the group's ability to renew its product portfolio following recent clinical setbacks.
Analyst Downgrades
UBS downgraded Sanofi from buy to neutral this Friday, lowering its price target from 105 euros to 88 euros. The Swiss bank cites disappointing results from the phase 3 study of tolebrutinib in treating multiple sclerosis and the negative impact of new pediatric vaccination schedules in the United States. Following this, Deutsche Bank also reduced its target from 110 to 105 euros while maintaining its buy recommendation. The stock is now trading at 80.88 euros, down 0.92% from the previous close of 81.63 euros. This session marks a new step in the correction of the stock, which has seen a decline of 2.43% over seven days and 15.59% over a year. The share of capital traded remains modest at 0.04%, indicating a gradual loss of confidence rather than a panic movement.
Technical Analysis
Technically, Sanofi is trading well below its 50-day moving average at 84.46 euros and its 200-day moving average at 85.62 euros, confirming a medium-term bearish trend. The stock is approaching the support threshold at 80.50 euros, a critical level whose breach could exacerbate tensions. The RSI at 48 remains in a neutral zone, indicating neither overbought nor oversold conditions, while the positive MACD histogram at 0.07 suggests a timid attempt at stabilization without clear confirmation of a reversal. UBS's new target of 88 euros implies an upside potential of 7.8% from the current price, with an expected dividend yield of 5.3%.
