Novartis: Berenberg downgrades stock
(CercleFinance.com) - On Wednesday Berenberg downgraded its rating on Novartis shares to "hold" (from "buy"), while reducing its target price for them from 90 Swiss francs to 80 Swiss francs.
With the planned demerger of Sandoz in H2 2023, Novartis will become a pure player in the pharmaceutical sector from 2024 onwards, the analyst said, although he warned of the impact of the loss of patent exclusivity from 2025 onwards.
The broker believes that it seems increasingly likely that Novartis will have to step up its external development in order to generate growth thereafter.
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With the planned demerger of Sandoz in H2 2023, Novartis will become a pure player in the pharmaceutical sector from 2024 onwards, the analyst said, although he warned of the impact of the loss of patent exclusivity from 2025 onwards.
The broker believes that it seems increasingly likely that Novartis will have to step up its external development in order to generate growth thereafter.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.