Sanofi Aventis upgraded to "buy"

02/09/07 - Deutsche Bank

LONDON, February 9 (newratings.com) - Analyst Paul Mann of Deutsche Bank upgrades Sanofi Aventis (SNW) from "hold" to "buy." The target price has been raised from €74 to €76.

In a research note published this morning, the analyst mentions that the company is likely to acquire Bristol-Myers Squibb. The acquisition is expected to be accretive to Sanofi Aventis’ EPS by 10%-30%, the analyst says. Deutsche Bank expects the valuation multiple of Sanofi Aventis’ stock to expand going forward, given the possibility of the company winning the ongoing Plavix litigation and receiving approval for its Acomplia drug.