Sanofi stock breaks through support at €71.47 and signs lowest level since 2018
Red lantern of the CAC 40 this Friday, Sanofi is posting a sharp decline against the backdrop of a Paris market globally oriented upwards. The stock touched an unprecedented low since 2018, extending a downward momentum that has intensified in recent weeks.
Eight-year low reached during trading session, below all technical support levels
During the session, Sanofi touched €69.75, a level unseen since 2018, before recovering slightly to €71.20. The stock has broken through its support at €71.47 and remains below it, posting the sharpest decline in the CAC 40 with a loss of 2.6% while the index gains 1.06% during the session. This divergence is particularly striking: all other members of the index are trading above Sanofi in today's ranking.
The decline is part of a broader trend: the stock is down 7.36% over one month and 16.41% over one year. On the moving averages front, the price is below the 20-day MA at €73.81 (gap of -3.54%), below the 50-day MA at €75.49 (-5.68%) and below the 200-day MA at €77.59 (-8.24%). The RSI at 44 remains in neutral territory, with no manifest signs of selling exhaustion at this stage, which does not slow the pressure weighing on the stock for several weeks.
Regeneron partnership expansion weighted by the market, CIC maintains its target at €92
The session follows the expansion of collaboration with Regeneron announced on October 1st, whereby Sanofi committed to paying one billion dollars to its American partner to add four long-acting antibodies to their historic agreement built around Dupixent, while ending a prior dispute between the two groups. This initial payment, significant in cash terms, fits within the context of the session. In this picture, the analyst opinion from CIC Market Solutions remains positioned as a buy with a target of €92, confirmed on October 1st, representing a theoretical upside of nearly 29% compared to the current price.
On the basis of expected earnings per share, the stock is trading at approximately 8.3 times the earnings of the current fiscal year according to the consensus of reviewed analysts, a valuation that reflects the uncertainties weighing on the group's trajectory. The first identified resistance remains at €78.94, while the price is now trading significantly below all of its moving averages.
