Deutsche Bank Downgrades Sanofi (SNY) to Hold

Deutsche Bank downgraded Sanofi (NYSE: SNY) from Buy to Hold with a price target of EUR 78 from EUR 93.

Analyst Mark Clark said, "We have been BUYers of Sanofi since we initiated coverage in 2009 but now feel it is time to move to the sidelines and cut to a HOLD rating. Company caution that sales in diabetes - its biggest therapy area - will only be "stable" in 2015 comes as an unwelcome surprise and leads us to cut our EPS forecasts by 7-15% pa over 2015-18E. Unlike last year's temporary 'blip' in EMs, this appears to be a fundamental and far-reaching change in outlook. With investors mindful of GSK's pricing-led travails in the respiratory category, we now expect Sanofi to maintain a discount rating to peers as we head into 2015."

For an analyst ratings summary and ratings history on Sanofi click here. For more ratings news on Sanofi click here.

Shares of Sanofi closed at $48.07 yesterday.

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