Analyst Sachin Jain of Bank of America Securities reiterated a Hold rating on Novartis AG, retaining the 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 recent performance and future projections. The company has updated its sales growth targets, projecting a compound annual growth rate of 5-6% from 2025 to 2030, which is slightly above consensus estimates. This suggests a potential for increased sales, but the growth rate does not significantly exceed market expectations.
Additionally, Novartis has outlined ambitious peak sales targets for several key products, indicating a robust pipeline. However, the valuation remains a concern, as the target price-to-earnings ratio for 2026 is higher than what the forecasted growth rate would typically justify. Despite the promising pipeline and potential for new product launches, these valuation concerns and the moderate growth outlook contribute to the Hold rating.
In another report released on November 18, Berenberg Bank also maintained a Hold rating on the stock with a CHF92.00 price target.