Sachin Jain, an analyst from Bank of America Securities, maintained the Hold rating on Novartis AG. The associated price target remains the same with CHF111.00.
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Sachin Jain has given his Hold rating due to a combination of factors influencing Novartis AG’s current and future performance. The company’s exposure to US policy changes, particularly regarding Medicare and Medicaid, is relatively low, which limits immediate risks from potential legislative changes. However, there are uncertainties around pricing strategies and tariff impacts, which could affect short-term financial outcomes.
Additionally, while Novartis has promising growth prospects with its pipeline of products, including potential peak sales upgrades for key drugs, these are balanced by challenges such as the slowing growth in China and the anticipated impact of Entresto’s loss of exclusivity in 2026. The company’s strategic focus on maintaining stable margins and political support provides some reassurance, but the overall outlook remains mixed, justifying a Hold rating at this time.
In another report released on September 22, UBS also maintained a Hold rating on the stock with a CHF95.00 price target.