Cautious Hold on Novartis AG Amid Mixed Ianalumab Data and Valuation Concerns

Analyst Sachin Jain of Bank of America Securities maintained a Hold rating on Novartis AG, retaining the price target of CHF111.00.

Sachin Jain has given his Hold rating due to a combination of factors surrounding Novartis AG’s current market position and future prospects. The company’s recent data on Ianalumab for Sjogren’s syndrome, while showing some promise, has received mixed feedback from key opinion leaders. Although there is potential for Ianalumab to become a first-in-class therapy, the underwhelming data and cautious outlook from experts suggest limited immediate upside.
Furthermore, while Novartis has outlined a path for growth with several upcoming catalysts, including multiple Phase III readouts and potential market expansions, the valuation appears to be a limiting factor. The company’s guidance for future sales growth is optimistic, but the realization of these projections depends on successful pipeline developments and market conditions. As such, the Hold rating reflects a balanced view of Novartis’s potential and current valuation, indicating that investors may want to wait for more definitive outcomes before making significant changes to their positions.

In another report released on October 29, UBS also maintained a Hold rating on the stock with a CHF95.00 price target.