Erste Group Bank Raises Earnings Estimates for Novartis

Key Points

• Erste Group nudged its FY2027 EPS forecast for Novartis to $9.74 (from $9.73), which is higher than the market consensus of $8.90 per share.
• Novartis missed Q1 expectations, reporting $1.99 EPS versus $2.11 expected and $13.52 billion revenue slightly below estimates, with the stock trading down about 1.7%.
• Analyst sentiment is mixed but cautious: the consensus rating is Hold with an average target price of $141.20 (range of ratings includes 1 Strong Buy, 6 Buy, 7 Hold and 2 Sell).

Novartis AG (NYSE:NVS - Free Report) - Analysts at Erste Group Bank increased their FY2027 earnings per share (EPS) estimates for shares of Novartis in a research report issued on Monday, April 27th. Erste Group Bank analyst H. Engel now anticipates that the company will post earnings per share of $9.74 for the year, up from their prior estimate of $9.73. The consensus estimate for Novartis' current full-year earnings is $8.90 per share.

NVS has been the topic of several other reports. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Novartis in a research report on Thursday, February 12th. DZ Bank lowered Novartis from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 9th. Citigroup restated a "buy" rating on shares of Novartis in a research report on Thursday, February 5th. TD Cowen restated a "hold" rating on shares of Novartis in a research report on Tuesday, February 17th. Finally, Wall Street Zen lowered Novartis from a "buy" rating to a "hold" rating in a research report on Saturday, February 7th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Novartis currently has a consensus rating of "Hold" and an average target price of $141.20.

Novartis Trading Down 1.7%

NYSE NVS opened at $142.99 on Thursday. The company has a quick ratio of 0.89, a current ratio of 1.12 and a debt-to-equity ratio of 0.60. Novartis has a twelve month low of $104.93 and a twelve month high of $170.46. The firm has a market capitalization of $272.84 billion, a PE ratio of 19.97, a P/E/G ratio of 2.48 and a beta of 0.52. The stock's 50 day moving average is $154.61 and its 200 day moving average is $143.75.

Novartis (NYSE:NVS - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The company reported $1.99 earnings per share for the quarter, missing analysts' consensus estimates of $2.11 by ($0.12). Novartis had a return on equity of 40.53% and a net margin of 25.65%.The business had revenue of $13.52 billion during the quarter, compared to the consensus estimate of $13.54 billion. During the same quarter in the prior year, the business posted $2.28 earnings per share. Novartis's quarterly revenue was down .9% compared to the same quarter last year.

Novartis Announces Dividend

The business also recently disclosed an annual dividend, which was paid on Monday, March 16th. Shareholders of record on Wednesday, March 11th were paid a dividend of $4.773 per share. The ex-dividend date was Wednesday, March 11th. This represents a yield of 306.0%. Novartis's payout ratio is presently 43.02%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in NVS. Brighton Jones LLC raised its stake in 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 buying an additional 2,666 shares during the last quarter. AQR Capital Management LLC raised its stake in Novartis by 102.8% during the first quarter. AQR Capital Management LLC now owns 22,573 shares of the company's stock valued at $2,516,000 after buying an additional 11,444 shares during the last quarter. Empowered Funds LLC purchased a new position in Novartis during the first quarter valued at $1,764,000. Sivia Capital Partners LLC raised its stake in Novartis by 48.0% during the second quarter. Sivia Capital Partners LLC now owns 7,959 shares of the company's stock valued at $963,000 after buying an additional 2,581 shares during the last quarter. Finally, Schnieders Capital Management LLC. purchased a new position in Novartis during the second quarter valued at $202,000. Hedge funds and other institutional investors 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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