Sanofi-Aventis S.A. - ADR (SNY) - Bull of the Day

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Sanofi-Aventis' (SNY) third quarter EPADS of $1.22 was above the Zacks Consensus Estimate of $1.17 but a couple of cents below the year-ago earnings.

We are encouraged to see Sanofi's progress with its pipeline. While new product launches should make significant revenue contributions in the early part of the decade, we expect Sanofi to continue looking to contain operating costs in order to grow earnings in the face of weakening sales of some of its biggest products. We also expect the company to look to grow revenue through additional partnering deals and acquisitions.

We believe the current share price represents an attractive entry point for long-term investors and are upgrading the stock to Outperform. Emerging markets, contributions from new products, continued strong performance of the diabetes and generics segments should help drive results.
 
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