Sanofi shares lose ground and fall back to their lowest level in a year
Sanofi is losing ground on Tuesday in a globally stable CAC 40, thus amplifying its recent decline. The stock is under pressure from its moving averages, while the previous day's announcement regarding Cheplapharm's entry into the capital continues to be digested by the market.
Sanofi below its three moving averages in a market context pressured by central banks
Sanofi is trading at €74.29 during the session, down 1.51% compared to the previous day (€75.43). The stock is now trading below its three moving averages: the MA20 at €76.67, the MA50 at €76.27 and the MA200 at €78.29, representing negative gaps of 3.10%, 2.60% and 5.11% respectively. This bearish configuration extends a movement that has been weighing for several weeks, with the stock declining 1.85% over seven days and 3% over three months.
The CAC 40 is down 0.26% during the session, in an environment weighed down by expectations of a rate hike by the U.S. Federal Reserve on Wednesday. Money markets are pricing in approximately 90% probability of a 25 basis point increase, in a context of 10-year Treasury yields above 5% and a surge in oil prices linked to tensions in the Middle East. Sanofi, a defensive value in the CAC 40, is not exempt from this widespread pressure, its rank in today's standings (35th out of 40) placing it among the worst performers of the index.
The Cheplapharm transaction and Sanofi's valuation in the context of an annual decline of nearly 8%
The main recent development is the agreement with Cheplapharm announced on September 14, under which Sanofi would take a 26.4% stake in the German group in exchange for the transfer of twenty mature medicines and three industrial sites. This portfolio rationalization transaction, which extends a collaboration engaged between the two groups in 2014, aims to lighten the French laboratory's base of mature assets in favor of its high-growth products. Today's price movement, which occurs after a gain of nearly 3% in the previous session, suggests that investors are now taking profits on this announcement, without the stock recovering clear bullish momentum.
Over one year, Sanofi is down 7.94%, which brings its valuation to approximately 8.7 times the earnings of the current fiscal year according to analyst consensus. The RSI at 48 remains in a neutral zone, without signaling marked selling exhaustion. The support at €73.25 represents the next level to watch in case of continued decline.
