Novartis price target lowered to $88 from $95 at HSBC

HSBC lowered the firm’s price target on Novartis (NVS) to $88 from $95 and keeps a Reduce rating on the shares. The firm says the confluence of first-time U.S. tariffs risks combined with a large patent cliff and Part D/Inflation Reduction Act headwinds might create some pressure on biopharma earnings. HSBC’s analysis suggests innovative pharma could face earnings headwinds of roughly 6%-14% if a 25% U.S. tariff were applied. A closer scrutiny of accounts and supply chains reveals potential risks to earnings might stem from other mechanisms such as tax rates, depending on how tariffs are structured, the analyst tells investors in a research note.