Novartis: Oddo upgrades stock
(CercleFinance.com) - Oddo BHF has upgraded its rating on Novartis shares from "neutral" to "outperform", raising its target price for them from 90 Swiss francs to 105 Swiss francs, suggesting that investors play the transformation to a pure player in innovative medicine.
Despite the stock's recent rebound, its current valuation (2024 P/E of 12.3x, or 17% below its historical median) offers an attractive entry point into a company that has a highly defensive nature, the analyst said.
The broker likes the Swiss healthcare group's transformation into a pure player in innovative medicine, along with its earnings growth that exceeds the sector median, with a CAGR of 2022/26 adjusted EPS of +9.1%, vs. +8.4% for the sector.
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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.
Despite the stock's recent rebound, its current valuation (2024 P/E of 12.3x, or 17% below its historical median) offers an attractive entry point into a company that has a highly defensive nature, the analyst said.
The broker likes the Swiss healthcare group's transformation into a pure player in innovative medicine, along with its earnings growth that exceeds the sector median, with a CAGR of 2022/26 adjusted EPS of +9.1%, vs. +8.4% for the sector.
Copyright (c) 2023 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.