Novartis: Liberum upgrades to 'buy' on fundamentals

(CercleFinance.com) - Liberum on Thursday upgraded its rating on Novartis, citing "attractive fundamentals" one day after the company relased better-than-expected quarterly results.


In a note this morning, the British broker said that there is now an opportunity at the Swiss drugmaker, where consensus underappreciates the upside potential in margin.

"We think the risk/reward for upcoming pipeline read-outs is positive," Liberum wrote, adding that the sum of fundamentals and the recent Alcon driven pullback has prompted it to upgrade the stock from "hold" to "buy."

The broker has also raised its target price from 88 Swiss francs to 91 Swiss francs.

The Novartis share was up 1.4% at 80.9 Swiss francs after these comments, the biggest gainer in Zurich's SMI index.

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