Erste Group Bank Forecasts Weaker Earnings for Novartis

Key Points

• Erste Group Bank cut its FY2026 EPS forecast for Novartis to $9.01 from $9.09, though the estimate remains above the consensus forecast of $8.86.
• Novartis reported quarterly EPS of $2.41 on $14.95 billion in revenue, with a 38.56% return on equity and a 23.29% net margin.
• Analyst sentiment is mixed: seven analysts rate the stock Buy, seven Hold and two Sell, resulting in a consensus Hold rating and an average price target of $141.20.

Novartis AG (NYSE:NVS - Free Report) - Equities research analysts at Erste Group Bank decreased their FY2026 earnings per share (EPS) estimates for Novartis in a research report issued to clients and investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the company will earn $9.01 per share for the year, down from their prior forecast of $9.09. The consensus estimate for Novartis' current full-year earnings is $8.86 per share.

Novartis (NYSE:NVS - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The company reported $2.41 earnings per share for the quarter. The company 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%.

A number of other research firms also recently commented on NVS. Weiss Ratings restated a "buy (b)" rating on shares of Novartis in a research report on Friday, July 24th. Citigroup reaffirmed a "buy" rating on shares of Novartis in a research note on Wednesday, July 22nd. Seven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Novartis currently has a consensus rating of "Hold" and an average price target of $141.20.

Novartis Stock Performance

NYSE:NVS opened at $156.80 on Tuesday. The company's 50-day moving average is $153.21 and its two-hundred day moving average is $153.26. The firm has a market capitalization of $299.20 billion, a price-to-earnings ratio of 23.65, a PEG 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. Novartis has a 1-year low of $117.54 and a 1-year high of $170.46.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. J.W. Cole Advisors Inc. grew its position in shares of Novartis by 0.6% during the fourth quarter. J.W. Cole Advisors Inc. now owns 10,577 shares of the company's stock worth $1,348,000 after acquiring an additional 64 shares during the last quarter. Roundview Capital LLC raised its holdings in shares of Novartis by 2.5% in the fourth quarter. Roundview Capital LLC now owns 2,711 shares of the company's stock valued at $374,000 after buying an additional 66 shares during the last quarter. CPC Advisors LLC boosted its stake in shares of Novartis by 4.6% during the second quarter. CPC Advisors LLC now owns 1,516 shares of the company's stock worth $238,000 after buying an additional 66 shares during the period. IMA Advisory Services Inc. increased its position in Novartis by 10.9% in the 4th quarter. IMA Advisory Services Inc. now owns 710 shares of the company's stock valued at $98,000 after acquiring an additional 70 shares during the period. Finally, Moody National Bank Trust Division lifted its position in Novartis by 4.2% during the 2nd quarter. Moody National Bank Trust Division now owns 1,802 shares of the company's stock worth $282,000 after acquiring an additional 72 shares during the period. Institutional investors and hedge funds own 13.12% of the company's stock.

Novartis Company Profile

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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