BofA Securities moved Sanofi to a neutral rating from buy and trimmed its price objective to €92 from €102, a decision the brokerage said reflects limited near-term catalysts and increased uncertainty following an announced change in chief executive. The company's shares fell more than 6% on Thursday after the broker's action and the management announcement.
Sanofi said that Paul Hudson will step down as chief executive on Feb. 17. He is to be succeeded by Belén Garijo, who previously served as chief executive of Merck KGaA. BofA noted that while investors had viewed a management change as a possible catalyst, the actual transition creates another interval of uncertainty for the company.
On the operational front, BofA told investors it expects a light pipeline catalyst schedule in fiscal 2026 and sees a relatively sparse catalyst path extending into 2027. The brokerage identified several data points it considers material over the coming 12 months: additional Phase III results for amlitilimab in the AQUA study, and persistence data from the ESTUARY program due in the second half of 2026.
At the same time, BofA flagged that efficacy readouts from the COAST-2 and SHORE studies have come in below expectations, a development that the firm said warrants increased caution around forthcoming readouts. The brokerage also pointed to regulatory and competitive risks, including uncertainty around tolebrutinib in secondary progressive multiple sclerosis after a recent complete response letter, and the prospect of rival Phase II data in atopic dermatitis expected in 2026.
Alongside its rating change, BofA reduced the valuation multiple applied to Sanofi, moving to roughly 10 times 2027 earnings per share from a prior 12 times multiple. The new €92 target equates to about $54.50 for the company's American depositary receipt, versus the previous €102 target equivalent to $59.16. BofA said the lower multiple is intended to reflect the added uncertainty in Sanofi's outlook.
Investors reacted to the combination of leadership turnover, a thin near-term clinical calendar and regulatory questions by selling the stock, resulting in the more than 6% decline recorded on Thursday.
Contextual note: The details above are drawn from BofA Securities' stated rationale for the rating and target changes, and from Sanofi's announcement regarding its chief executive transition. The timing and specifics of upcoming trial readouts and regulatory communications were described by the brokerage as central to the company's near-term outlook.