In a report released today, Graham Parry from Bank of America Securities reiterated a Hold rating on Novartis AG (NOVN – Research Report), with a price target of CHF114.00.
Graham Parry’s rating is based on a combination of factors that influence Novartis AG’s stock performance. Despite the strong momentum seen in the first quarter of 2025, with significant sales growth driven by key products like Entresto, Cosentyx, Kisqali, Kesimpta, and Scemblix, there are uncertainties that temper the outlook. The potential for a guidance raise exists, but it is clouded by the uncertainty surrounding pharmaceutical tariffs, which could impact margins and overall financial performance.
Additionally, while there is optimism around the launches of Kisqali and Scemblix, and potential upgrades to earnings per share forecasts, the longer-term growth prospects are challenged by the loss of exclusivity for key drugs post-2028. Furthermore, there is limited data from Phase III trials in the near term, which adds to the cautious stance. These factors lead to a Hold rating, reflecting a balanced view of the positive sales momentum against the backdrop of regulatory and market uncertainties.
In another report released on April 11, J.P. Morgan also reiterated a Hold rating on the stock with a CHF95.00 price target.