Erste Group Bank Forecasts Increased Earnings for Novartis

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for Novartis to $9.09, up from $8.90 and above the consensus estimate of $8.82. The analyst also projects FY2027 EPS of $9.82.
• Novartis reported quarterly EPS of $2.41 on revenue of $14.95 billion, with a 23.29% net margin and 38.56% return on equity.
• Analyst sentiment is mixed, with seven Buy, seven Hold and two Sell ratings; the stock has an average “Hold” rating and a consensus price target of $141.20, while shares recently opened at $158.45.

Novartis AG (NYSE:NVS - Free Report) - Research analysts at Erste Group Bank upped their FY2026 earnings per share (EPS) estimates for Novartis in a research note issued to investors on Monday, July 27th. Erste Group Bank analyst H. Engel now expects that the company will earn $9.09 per share for the year, up from their prior forecast of $8.90. The consensus estimate for Novartis' current full-year earnings is $8.82 per share. Erste Group Bank also issued estimates for Novartis' FY2027 earnings at $9.82 EPS.

Novartis (NYSE:NVS - Get Free Report) last issued its earnings results on Tuesday, June 30th. The company reported $2.41 earnings per share (EPS) for the quarter. Novartis had a return on equity of 38.56% and a net margin of 23.29%.The company had revenue of $14.95 billion for the quarter.

NVS has been the topic of several other research reports. Citigroup reiterated a "buy" rating on shares of Novartis in a research report on Wednesday, July 22nd. Weiss Ratings restated a "buy (b)" rating on shares of Novartis in a research report on Friday, July 24th. Seven equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $141.20.

Novartis Trading Down 0.2%

NVS stock opened at $158.45 on Friday. Novartis has a 1-year low of $112.34 and a 1-year high of $170.46. 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 has a market capitalization of $302.35 billion, a price-to-earnings ratio of 23.90, a PEG ratio of 2.73 and a beta of 0.45. The business has a 50 day simple moving average of $152.58 and a two-hundred day simple moving average of $152.70.

Hedge Funds Weigh In On Novartis

Several institutional investors have recently added to or reduced their stakes in NVS. Legacy Advisors LLC raised its holdings in shares of Novartis by 13.2% during the 2nd quarter. Legacy Advisors LLC now owns 2,837 shares of the company's stock worth $445,000 after acquiring an additional 330 shares in the last quarter. CPC Advisors LLC grew its holdings in shares of Novartis by 4.6% in the second quarter. CPC Advisors LLC now owns 1,516 shares of the company's stock valued at $238,000 after purchasing an additional 66 shares in the last quarter. Benjamin Edwards Inc. grew its holdings in shares of Novartis by 13.8% in the second quarter. Benjamin Edwards Inc. now owns 5,979 shares of the company's stock valued at $937,000 after purchasing an additional 726 shares in the last quarter. Provenance Wealth Advisors LLC increased its position in Novartis by 27.4% in the second quarter. Provenance Wealth Advisors LLC now owns 637 shares of the company's stock worth $100,000 after purchasing an additional 137 shares during the last quarter. Finally, Leisure Capital Management increased its position in Novartis by 11.1% in the second quarter. Leisure Capital Management now owns 1,549 shares of the company's stock worth $243,000 after purchasing an additional 155 shares during the last quarter. Hedge funds and other institutional investors own 13.12% of the company's stock.

About Novartis

Novartis is a Swiss multinational pharmaceutical company headquartered in Basel that researches, develops, manufactures and commercializes prescription medicines and related health-care products. Formed through the 1996 merger of Ciba-Geigy and Sandoz, Novartis operates globally and focuses on bringing therapeutics from discovery through clinical development to commercial markets worldwide.

The company's activities center on innovative pharmaceuticals across several therapeutic areas, including oncology, immunology, cardiovascular and metabolic diseases, neuroscience and ophthalmology, alongside capabilities in advanced therapies such as biologics, cell and gene therapies.

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