Analyst Florent Cespedes from Bernstein reiterated a Buy rating on Novartis AG and keeping the price target at CHF115.00.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Florent Cespedes has given his Buy rating due to a combination of factors including Novartis’s solid quarterly performance and strategic initiatives. The company reported an 11% sales growth, driven by strong performances in their cancer treatment Kisqali, which offset weaker sales in Cosentyx due to pricing pressures and competition. Additionally, Novartis’s operating profit exceeded expectations, attributed to a favorable product mix and effective cost management strategies.
Furthermore, Novartis increased its guidance for operating profit for FY25 and announced a $10 billion share buyback plan, which is expected to positively impact investor sentiment. The appointment of a new CFO is also seen as a positive move for the company’s future. Despite challenges from generic competition, the company’s strategic actions and financial discipline have reinforced confidence in its growth prospects, justifying the Buy rating.
In another report released on July 14, Kepler Capital also maintained a Buy rating on the stock with a CHF106.00 price target.