Novartis: JPMorgan upgrades stock
(CercleFinance.com) - On Tuesday JPMorgan upgraded its rating on Novartis shares to "neutral" (from "underweight"), increasing its target price for them to 85 Swiss francs (from 78 Swiss francs).
In a study of the European pharmaceutical sector, the analyst said he sees limited risk of a reduction in analysts' earnings estimates after years of consensus downgrades.
And while he believes that it will be difficult for the Swiss company to reach its target of 4% sales growth for its most innovative drugs, he says that he sees potential pleasant surprises in the group's pipeline of drugs in development.
FY 2023 could see an increases in earnings estimates for the latest products in its portfolio, such as the anti-cancer drug Kisqali and iptacopan in paroxysmal nocturnal hemoglobinuria.
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