Sanofi stock gains 1.5% and pushes CAC 40 higher
The Paris-based pharmaceutical laboratory is recovering ground in early afternoon, amid a declining CAC 40. This renewed activity comes after several weeks of decline that led the stock to an unprecedented low since 2018.
A rebound below the three moving averages following Friday's decline
The stock gains 1.4% to €71.80 in trading, after having broken through its support at €71.47 on Friday, the last of the index that day. It ranks among the strongest gainers in the CAC 40, which is down 0.54%. This movement remains modest compared to the accumulated decline: the stock is still 2.35% below its 20-day moving average and 7.39% below its 200-day moving average.
The RSI at 35 describes a stock that remains fragile despite today's recovery, with a decline of 5.85% over one month and 17.28% over one year. The support at €70.56, located less than 2% from the current price, is the nearest level.
Regeneron, Cheplapharm and a P/E ratio of 8.4: the substance of the matter
On the news front, Sanofi expanded its collaboration with Regeneron on October 1st to four new antibodies, with an initial payment of one billion dollars from the French group. In mid-September, the group had also planned to acquire a stake in Cheplapharm of 26.4%. From a valuation perspective, according to analyst consensus surveyed, the stock trades at approximately 8.4 times current fiscal year earnings and 7.9 times next fiscal year earnings, with expected earnings per share growth of 5.8%.
Sanofi has also repurchased €1.8 billion in shares over twelve months, representing 2.0% of its market capitalization, according to the latest statement of April 28th. The support at €70.56 remains the nearest technical level to the current price.
