Novartis AG (NYSE:NVS) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts maintain a “Hold” consensus on Novartis, with 10 hold ratings and six buys among 16 firms. The average 12-month price target is $153, above the reported share price of $137.22.
• Recent clinical setbacks, including the late-stage failure of experimental drug del-desiran, have raised concerns about Novartis’s growth pipeline and the value of its roughly $30 billion in acquisitions.
• A major shareholder is calling for a board shake-up following the trial failures and share-price decline, while institutional investors own 13.12% of the company’s stock.

Shares of Novartis AG (NYSE:NVS - Get Free Report) have been given an average recommendation of "Hold" by the sixteen ratings firms that are currently covering the stock, MarketBeat Ratings reports. Ten equities research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 1-year price target among analysts that have covered the stock in the last year is $153.00.

A number of research firms have weighed in on NVS. Weiss Ratings reissued a "buy (b)" rating on shares of Novartis in a research report on Friday, July 24th. Deutsche Bank Aktiengesellschaft lowered shares of Novartis from a "buy" rating to a "hold" rating in a research note on Tuesday. Citigroup reissued a "buy" rating on shares of Novartis in a research report on Wednesday, July 22nd. HSBC set a $136.00 target price on Novartis in a research report on Thursday. Finally, Royal Bank Of Canada began coverage on Novartis in a report on Tuesday. They issued a "sector perform" rating for the company.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. SOA Wealth Advisors LLC. increased its position in Novartis by 4,316.2% in the 2nd quarter. SOA Wealth Advisors LLC. now owns 14,750 shares of the company's stock valued at $2,312,000 after buying an additional 14,416 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its stake in Novartis by 40.4% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 195,986 shares of the company's stock valued at $30,715,000 after acquiring an additional 56,424 shares during the period. Mission Wealth Management LP grew its stake in Novartis by 85.7% in the second quarter. Mission Wealth Management LP now owns 19,690 shares of the company's stock valued at $3,086,000 after acquiring an additional 9,086 shares during the period. Brighton Jones LLC increased its holdings in shares of Novartis by 76.5% during the fourth quarter. Brighton Jones LLC now owns 6,153 shares of the company's stock valued at $599,000 after acquiring an additional 2,666 shares in the last quarter. Finally, Presilium Private Wealth LLC acquired a new position in shares of Novartis during the first quarter worth approximately $703,000. Institutional investors and hedge funds own 13.12% of the company's stock.

More Novartis News

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: The stock showed signs of rebounding after its steep selloff, suggesting some investors may view the decline as an overreaction and remain confident in Novartis’s established medicines portfolio. Novartis Rebounds as $30 Billion Wipeout Draws Board Challenge
• Neutral Sentiment: Investors are focusing on how Novartis deployed roughly $30 billion in recent deals, as several acquired programs have encountered clinical setbacks. The scrutiny could lead to changes in capital-allocation priorities, deal approval processes or board composition. Focus: Novartis investors turn spotlight on M&A after trial setbacks
• Negative Sentiment: Experimental drug del-desiran failed to produce a statistically significant improvement in a late-stage trial for myotonic dystrophy type 1. The failure removes a potentially important growth asset and adds to concerns about Novartis’s pipeline. Drug Trial Setbacks Raise Questions Over Novartis’s Growth Pipeline
• Negative Sentiment: Del-desiran was the second major trial setback in a short period, contributing to a sharp weekly selloff and making investors question whether acquisitions are generating sufficient pipeline value. Deutsche Bank responded by cutting its view on the stock. Novartis extends selloff as Deutsche Bank cuts on twin drug trial setbacks
• Negative Sentiment: A major shareholder has called for a board shake-up, arguing that stronger oversight is needed after the trial failures and share-price decline. The challenge adds reputational and execution risk for management. Major Novartis shareholder calls for board shake-up after drug trial setbacks

Novartis Stock Performance

Shares of NYSE:NVS opened at $137.22 on Friday. Novartis has a 1 year low of $121.57 and a 1 year high of $170.46. The stock has a market capitalization of $261.84 billion, a price-to-earnings ratio of 20.70, a price-to-earnings-growth ratio of 2.67 and a beta of 0.45. The company has a debt-to-equity ratio of 0.89, a current ratio of 0.86 and a quick ratio of 0.67. The company's 50 day simple moving average is $154.18 and its 200 day simple moving average is $153.00.

Novartis (NYSE:NVS - Get Free Report) last announced its quarterly earnings results on Tuesday, June 30th. The company reported $2.41 EPS for the quarter. The firm had revenue of $14.95 billion for the quarter. Novartis had a return on equity of 38.56% and a net margin of 23.29%. As a group, research analysts predict that Novartis will post 8.84 EPS for the current fiscal year.

About Novartis

Novartis AG NYSE: NVS is a Switzerland-based pharmaceutical company focused on discovering, developing and commercializing innovative medicines. The company's portfolio addresses major disease areas including cardiovascular, renal and metabolic conditions, immunology, neuroscience, oncology and hematology.

Novartis markets medicines such as Entresto for certain heart conditions, Cosentyx for inflammatory diseases, Kisqali for breast cancer, Kesimpta for multiple sclerosis, Leqvio for cholesterol management, Pluvicto for certain prostate cancers and Scemblix for chronic myeloid leukemia.

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