In a report released today, Sachin Jain from Bank of America Securities upgraded Novartis AG to a Buy, with a price target of CHF117.00.
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Sachin Jain has given his Buy rating due to a combination of factors that highlight Novartis AG’s potential for growth and resilience against upcoming challenges. The company is facing significant patent expirations towards the end of the decade, but Jain believes that Novartis’s robust pipeline of new drug launches and developments will offset these challenges. Notably, the successful launches of Pluvicto, Scemblix, and Leqvio, along with anticipated launches like Rhapsido and ianalumab, are expected to strengthen the company’s market position.
Furthermore, Jain emphasizes the importance of seven pivotal Phase III clinical trials expected to read out in FY26, which could generate substantial peak sales. These trials, including those for Pelacarsen and Remibrutinib, are projected to contribute significantly to the company’s revenue, potentially reaching $15.6 billion in peak sales. Despite some risks associated with these trials, Jain is optimistic about their outcomes and the overall strategic direction of Novartis, leading to the upgraded Buy rating.
In another report released on November 21, Kepler Capital also maintained a Buy rating on the stock with a CHF106.00 price target.