Novartis AG: Hold Rating Amid Promising Trials and Competitive Challenges

Sachin Jain, an analyst from Bank of America Securities, maintained the Hold rating on Novartis AG (NOVN – Research Report). The associated price target is CHF111.00.

Sachin Jain has given his Hold rating due to a combination of factors impacting Novartis AG. One of the key considerations is the performance of Pluvicto, which has shown promise in the PSMAddition trial for metastatic hormone-sensitive prostate cancer. While the trial met its primary endpoint and shows potential for significant sales, the competition from existing treatments like Nubeqa poses a challenge.
Furthermore, Jain considers the upcoming data for ianalumab in Sjogren’s syndrome as a potential growth driver, though it comes with high risk due to the challenging nature of the indication. Additionally, the looming loss of exclusivity for key drugs such as Entresto and Cosentyx presents a growth headwind beyond 2028. These factors, combined with the high-risk nature of the pipeline, contribute to the decision to maintain a Hold rating on Novartis AG.

In another report released on May 16, Berenberg Bank also maintained a Hold rating on the stock with a CHF89.00 price target.