HSBC says European healthcare can benefit if AI, tech weaken

Sanofi SA

06/07/2026 13:23

6 Jul 2026 -    ** HSBC says European healthcare could benefit from investor rotation if AI and tech stocks weaken, pointing to the sector's first-half underperformance and more attractive valuations
** The brokerage prefers AstraZeneca AZN.L, Bayer BAYGn.DE and Sanofi SASY.PA, all rated "buy", on visible earnings catalysts and manageable risks
** Sees AstraZeneca benefiting from pipeline momentum and earnings visibility; Bayer offers improving risk-reward profile and Sanofi has growth prospects in vaccine and immunology
** Upgrades GSK GSK.L to "hold", citing stronger HIV trends and improved capital allocation 
** Downgrades Merck MRCG.DE and Roche ROPC.S to "hold", saying recovery expectations are now largely priced in 
** Rates Novartis NOVN.S "reduce", keeps among least-preferred stocks, with limited upside after recent outperformance and fewer near-term catalysts 
** Table below shows HSBC's rating and price target changes:
 
COMPANY
RATING
OLD RATING
PT
OLD PT
AstraZeneca
Buy
Buy
165 GBP
172 GBP
Bayer
Buy
Buy
60 EUR
60 EUR
Sanofi 
Buy
Buy
95 EUR
95 EUR
Novartis
Reduce
Reduce
95 CHF
95 CHF
Merck KGaA
Hold
Buy
170 EUR
160 EUR
Roche
Hold
Buy
365 CHF
365 CHF
GSK
Hold
Reduce
18.60 GBP
15.00 GBP
     

 (Reporting by Kira Britten)
 ((Kira.britten@thomsonreuters.com))