Sanofi
Note: This is a daily stock update and the information stands true as of 11/10/24, 09:00 CET.
Company Update:
Expert Opinion:
The disposal of that stake is a good news? Sanofi will get c €7.5bn in cash and part of it is likely to be distributed back to shareholders. Yes the value fetched by Opella is lower than what our analyst had in mind but I expect that with CD&R at the helm, the ability to grow and sales and margin will be enhanced and therefore value of disposal for the remainder stake could surprise positively. Sanofi still offers an attractive risk reward profile with PE of 16.7x in 24 and 13.9x in 25, significantly below the valuation ratios of oncology giants like Astra or Novartis. The most discounted valuation from that standpoint is Roche, which despite its strong presence in Oncolgy is trading at low valuation ratios PE24 of 14, PE 25 of 13.1x and PE 26 at 12.1x). Roche is a clear long term buy in my opinion.
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Company Update:
D&R will buy a 50%+ stake in Opella, while Sanofi will retain the rest with a view to selling more over the next few years. The deal values Opella at €15.5bn, which is much less than our GAV of €21.6bn. Moreover, the implied 2024e EV/sales multiple of 2.9x for Opella is also lower than some of the other consumer healthcare peers, including Haleon (3.7x) and Kenvue (3.1x, consensus).
Expert Opinion:
The disposal of that stake is a good news? Sanofi will get c €7.5bn in cash and part of it is likely to be distributed back to shareholders. Yes the value fetched by Opella is lower than what our analyst had in mind but I expect that with CD&R at the helm, the ability to grow and sales and margin will be enhanced and therefore value of disposal for the remainder stake could surprise positively. Sanofi still offers an attractive risk reward profile with PE of 16.7x in 24 and 13.9x in 25, significantly below the valuation ratios of oncology giants like Astra or Novartis. The most discounted valuation from that standpoint is Roche, which despite its strong presence in Oncolgy is trading at low valuation ratios PE24 of 14, PE 25 of 13.1x and PE 26 at 12.1x). Roche is a clear long term buy in my opinion.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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