SANOFI Upgrading from Neutral to Buy

We are moving our rating from Neutral to Buy on Sanofi. We see a diversity of positive trends in action within the group. These bode well for the next few years and not only reflect into a dynamic and attractive average, but also into an organization perceived as more agile and open-minded than it used to be. With new faces coming from outside likely to make this statement even clearer, a new simplified and more focused organisation, less pressure from Diabetes and a pipeline entering a delivery phase, we see Sanofi ready for a new chapter. Current share price looks like a good entry point to play the recovery. Our new FV of EUR83 simply says that now Sanofi should be priced in line with the sector in 2019 vs the current discount of 10-15%.