Novartis: Stifel still on hold
(CercleFinance.com) - Stifel maintains its Hold rating on Novartis shares, along with a target price of 87 Swiss francs.
The company is taking "the appropriate measures to address the point and implement deep changes in the organization, which has to become more US-centric," the analyst says.
"What we are still struggling with is the mid-term top-line guidance of 4% CAGR by 2027, which is fairly uninspiring," Stifel points out.
The lack of clarity on Entresto is also a barrier. "Now, Novartis is expecting to improve Core EBIT margin by more than 500bp over the same period," the analyst says, however.
"Finally, there are upside scenarios," Stifel adds, "Lastly, there are upside scenarios if iptacopan, Pluvicto in 1L and Kisqali with NATALEE read out positively over the next few months."
Is it worth buying? "The current price is attractive, but we doubt Novartis is yet in a situation to outperform peers," the analyst concludes.
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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.
The company is taking "the appropriate measures to address the point and implement deep changes in the organization, which has to become more US-centric," the analyst says.
"What we are still struggling with is the mid-term top-line guidance of 4% CAGR by 2027, which is fairly uninspiring," Stifel points out.
The lack of clarity on Entresto is also a barrier. "Now, Novartis is expecting to improve Core EBIT margin by more than 500bp over the same period," the analyst says, however.
"Finally, there are upside scenarios," Stifel adds, "Lastly, there are upside scenarios if iptacopan, Pluvicto in 1L and Kisqali with NATALEE read out positively over the next few months."
Is it worth buying? "The current price is attractive, but we doubt Novartis is yet in a situation to outperform peers," the analyst concludes.
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.