Bank of America Securities analyst Sachin Jain reiterated a Hold rating on Novartis AG today and set a price target of CHF111.00.
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Sachin Jain has given his Hold rating due to a combination of factors related to Novartis AG’s current financial and strategic outlook. The company is experiencing a period of EPS momentum, driven by promising developments in its pipeline, particularly with drugs like Kisqali, Scemblix, and Pluvicto. However, the pipeline is considered high-risk with several key data reads expected in the coming years, which could influence the company’s growth trajectory.
Despite the potential for positive developments, Jain remains cautious due to valuation concerns and a slowing growth outlook. The target price-to-earnings ratio is higher than what would typically be expected given the forecasted growth rate. Additionally, while there are opportunities for upgrades based on new data releases, the risks associated with the pipeline and patent exposures contribute to the Hold rating. Overall, the balance of potential rewards against the inherent risks and valuation challenges supports a neutral stance.
In another report released on September 2, Jefferies also maintained a Hold rating on the stock with a CHF100.00 price target.