Novartis: Buy Rating Backed by Strong Rx Momentum, De-Risked Late-Stage Pipeline and Attractive Valuation

Novartis AG, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Sachin Jain from Bank of America Securities reiterated a Buy rating on the stock and has a CHF130.00 price target.

Sachin Jain has given his Buy rating due to a combination of factors that, in his view, support both near‑term performance and longer‑term value creation for Novartis. He highlights robust prescription growth for several key products, including Scemblix, Kisqali and Kesimpta, which underpins confidence in the company’s top-line momentum despite quarterly phasing effects and tougher year-on-year comparisons. He also notes that management’s guidance for 2026 – modest sales growth with broadly stable operating profit and a slight foreign-exchange tailwind – appears achievable, with potential for incremental upside as new and existing therapies gain traction. In addition, efficiency measures are expected to counter margin pressure from generic erosion and the recently acquired Avidity assets, limiting profitability dilution.

Sachin Jain’s positive stance is further supported by the view that Novartis’s advancing pipeline can more than compensate for looming patent expiries later in the decade. He points to the successful roll-out of recent launches such as Pluvicto, Scemblix and Leqvio, as well as upcoming products like Rhapsido and ianalumab, as evidence that the company can replace revenue at risk from loss of exclusivity. He underscores a group of Phase III readouts anticipated for 2026, which collectively represent a substantial potential revenue opportunity and are increasingly de-risked, especially candidates like remibrutinib, abelacimab and assets from the Avidity collaboration. Finally, he argues that additional programs, including Zigakibart within the IgAN portfolio, add further optionality, and that the increased price objective reflects an improving earnings outlook and a valuation that remains attractive relative to the broader market.

According to TipRanks, Jain is a 3-star analyst with an average return of 3.8% and a 57.24% success rate. Jain covers the Healthcare sector, focusing on stocks such as Novartis AG, GlaxoSmithKline, and Sanofi.

In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a CHF125.00 price target.