Is Sanofi SA (SNY) One of the Best Cheap Stocks to Buy for 2026

Sanofi SA (NASDAQ:SNY) is one of the best cheap stocks to buy for 2026. On January 27, Citi Research initiated coverage of six large European pharmaceutical stocks, including Sanofi SA (NASDAQ:SNY), AstraZeneca, Roche, Novo Nordisk, GSK, and Novartis.

Citi assigned Sanofi a Neutral rating and an €85 price target, a move that positioned the company in the middle of the group. The bank’s analyst Graham Parry commented that pipeline setbacks have weakened the long-term growth outlook for Sanofi. In other words, Citi has concerns about Sanofi’s drug development progress. Parry also described 2026 as “catalyst-light” for Sanofi, and that he sees fewer near-term events or milestones that might drive the stock.

In discussing the company’s valuation, Citi stated that Sanofi has time to strengthen its pipeline organically and through acquisitions over the next five years. However, the analysts noted that the company’s current valuation, about 10 times expected 2026 earnings, largely reflects the setbacks. The firm added that they believe the market is unlikely to reward the stock with a much higher multiple without tangible evidence of pipeline improvement.

Meanwhile, on January 23, Sanofi reported that its experimental medicine amlitelimab showed positive results in Phase 3 clinical studies. The studies focused on moderate-to-severe atopic dermatitis (eczema) in people aged 12 years and older. The data come from two major global trials called SHORE and COAST 2, and follow earlier positive findings from the COAST 1 study. Across both studies, amlitelimab was generally well tolerated, and side effects were consistent with what Sanofi has seen before.

Sanofi SA (NASDAQ:SNY) is a global healthcare company engaged in the research, development, manufacturing, and marketing of pharmaceutical products. Its operations span specialty care, vaccines, and general medicines.

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Disclosure: None. This article is originally published at Insider Monkey.