Despite only a slight miss in the Q3 vs. consensus, Sanofi’s shares were hammered today, as markets were disappointed with the 2024 outlook. Even the intention to separate CHC and a rebound guided in 2025 backed by the newly-announced cost saving plan could not lift investors’ spirits. However, given that the near-term earnings pain is due to an increasing R&D focus which is a sensible strategy for the longer-term, the sell-off was clearly an over-reaction and Sanofi’s attractiveness as a medium ....
27 Oct 2023
Decent Q3; an unforgiving market reaction to a weaker 2024 outlook
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Decent Q3; an unforgiving market reaction to a weaker 2024 outlook
Despite only a slight miss in the Q3 vs. consensus, Sanofi’s shares were hammered today, as markets were disappointed with the 2024 outlook. Even the intention to separate CHC and a rebound guided in 2025 backed by the newly-announced cost saving plan could not lift investors’ spirits. However, given that the near-term earnings pain is due to an increasing R&D focus which is a sensible strategy for the longer-term, the sell-off was clearly an over-reaction and Sanofi’s attractiveness as a medium ....