EUROPEAN EQUITIES
R-co Conviction Equity Value Euro: investment Case
Technip Energies – Oil services
Sanofi – Big Pharma
▪ Credibility coming back (success in Phase III
▪ World leader in the engineering, design and construction of energy infrastructures
Tolebrutinib/Multiple sclerosis, ongoing success of mega block buster Dupixent) and more to come with 1 Phase III read out every year at least)
▪ Global investment in energy should increase by more than 8% per year until 2030 (IEA APS scenario)
▪ No loss of exclusivity before 2031 (vs peers losing patents as of 2026)
▪ Thanks to its innovative solutions for gas, renewable energy, hydrogen and carbon capture, the company can outperform in any energy scenario transition
▪ Success of Consumer Health care disposal (Opella) , refocusing the group on Pharma (17MM€ price tag, 7 - 9MM€ for share buy back) ▪ Strong financial situation (ND/EBITDA @ 0.7x et 10MM€ FCF pa), allowing M&A opportunities on promising therapies/molecules ▪ 10% discount to the sector’s average with PE of 12x, not justified in our view given superior eps growth to come (CAGR EPS growth 2024-29 +8% vs 6% ex-Novo Nordisk)
▪ Best in class execution and profitability with a margin of 7.5%
▪ Could benefit from Trump election if the American moratorium on LNG is lifted
Public
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Source: Rothschild & Co Asset Management – 31/12/2024
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