Novartis (NYSE:NVS) Downgraded by Deutsche Bank Aktiengesellschaft to Sell

Key Points

• Deutsche Bank downgraded Novartis from “Hold” to “Sell,” while the broader analyst consensus remains “Hold” with a $152.25 target price.
• Novartis shares rose to $161.64, near the upper end of their 12-month range, despite valuation metrics including a 30.87 price-to-earnings ratio.
• The company exceeded quarterly expectations, reporting $2.46 in earnings per share and $15.03 billion in revenue, with revenue up 4.4% year over year.

Novartis (NYSE:NVS - Get Free Report) was downgraded by research analysts at Deutsche Bank Aktiengesellschaft from a "hold" rating to a "sell" rating in a research report issued on Friday, Briefing.com reports.

A number of other brokerages have also recently weighed in on NVS. Morgan Stanley reiterated an "overweight" rating and set a $163.00 price target on shares of Novartis in a research report on Wednesday. Sanford C. Bernstein reissued a "neutral" rating on shares of Novartis in a report on Wednesday, July 22nd. Berenberg Bank dropped their target price on Novartis from $147.00 to $130.00 and set a "hold" rating on the stock in a report on Friday, September 11th. Citigroup reiterated a "buy" rating on shares of Novartis in a research report on Wednesday, July 22nd. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Novartis in a research report on Thursday, October 22nd. Six investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Novartis presently has a consensus rating of "Hold" and a consensus target price of $152.25.

Novartis Stock Performance

Shares of Novartis stock traded up $0.54 on Friday, reaching $161.64. 1,065,938 shares of the stock were exchanged, compared to its average volume of 2,000,321. Novartis has a twelve month low of $122.57 and a twelve month high of $170.46. The company has a quick ratio of 0.67, a current ratio of 0.88 and a debt-to-equity ratio of 0.98. The firm has a market capitalization of $308.43 billion, a price-to-earnings ratio of 30.87, a PEG ratio of 2.91 and a beta of 0.41. The business has a 50 day moving average price of $148.32 and a two-hundred day moving average price of $151.71.

Novartis (NYSE:NVS - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The company reported $2.46 EPS for the quarter, beating the consensus estimate of $2.25 by $0.21. Novartis had a net margin of 18.11% and a return on equity of 41.04%. The business had revenue of $15.03 billion during the quarter, compared to analysts' expectations of $14.53 billion. During the same period in the previous year, the business posted $2.25 EPS. The business's quarterly revenue was up 4.4% compared to the same quarter last year. Analysts anticipate that Novartis will post 8.94 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Novartis

A number of institutional investors have recently added to or reduced their stakes in NVS. CPC Advisors LLC increased its position in Novartis by 4.6% in the 2nd quarter. CPC Advisors LLC now owns 1,516 shares of the company's stock valued at $238,000 after buying an additional 66 shares in the last quarter. Canopy Partners LLC boosted its holdings in Novartis by 1.9% in the third quarter. Canopy Partners LLC now owns 3,525 shares of the company's stock worth $503,000 after acquiring an additional 67 shares in the last quarter. Busey Bank grew its stake in Novartis by 2.8% in the third quarter. Busey Bank now owns 2,521 shares of the company's stock valued at $359,000 after acquiring an additional 69 shares during the period. Moody National Bank Trust Division grew its stake in Novartis by 4.2% in the second quarter. Moody National Bank Trust Division now owns 1,802 shares of the company's stock valued at $282,000 after acquiring an additional 72 shares during the period. Finally, PFG Investments LLC increased its holdings in shares of Novartis by 1.8% during the second quarter. PFG Investments LLC now owns 4,173 shares of the company's stock valued at $654,000 after acquiring an additional 72 shares in the last quarter. 13.12% of the stock is owned by institutional investors and hedge funds.

About Novartis

Novartis AG is a Switzerland-based pharmaceutical company focused on the discovery, development and commercialization of innovative medicines. The company's research and commercial activities span areas including cardiovascular, renal and metabolic diseases, immunology, neuroscience, oncology and hematology. Its portfolio includes prescription medicines such as Entresto, Cosentyx, Kisqali, Kesimpta, Leqvio, Pluvicto and Scemblix.

Novartis serves patients and healthcare providers in markets around the world.

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