Bank of America Securities analyst Sachin Jain reiterated a Hold rating on Novartis AG (NOVN – Research Report) today and set a price target of CHF111.00.
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Sachin Jain’s rating is based on a combination of factors that include strong product performance and growth prospects, but also some concerns regarding valuation. Novartis has shown impressive sales and earnings growth, with key products like Kisqali and Scemblix experiencing significant year-over-year increases in prescriptions. Additionally, the company has demonstrated strong margin progression, which is a positive indicator for its financial health.
However, despite these strengths, Jain remains cautious due to potential challenges such as generic competition, particularly for products like Entresto, Promacta, and Tasigna. The ongoing patent litigation and the potential impact of generics on sales and earnings growth contribute to this cautious outlook. Furthermore, while there is solid momentum in earnings per share and promising pipeline developments, the valuation concerns lead Jain to maintain a Hold rating, as the current price may already reflect these growth prospects.
According to TipRanks, Jain is a 2-star analyst with an average return of 0.8% and a 48.48% success rate. Jain covers the Healthcare sector, focusing on stocks such as AstraZeneca, Sanofi, and Novo Nordisk.