Novartis FY2027 Earnings Forecast Cut by Erste Group Bank

Key Points

• Erste Group Bank lowered Novartis’ FY2027 EPS forecast slightly to $9.80 from $9.81, still above the broader consensus estimate of $8.91.
• Novartis shares opened at $142.43, down 1.0%, below their 50-day and 200-day moving averages. The stock has traded between $121.57 and $170.46 over the past year.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and a $145.60 target price; institutional investors own 13.12% of the company.

Novartis AG (NYSE:NVS - Free Report) - Investment analysts at Erste Group Bank cut their FY2027 earnings per share (EPS) estimates for Novartis in a research note issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now expects that the company will post earnings of $9.80 per share for the year, down from their previous forecast of $9.81. The consensus estimate for Novartis' current full-year earnings is $8.91 per share.

NVS has been the topic of several other reports. Weiss Ratings reiterated a "buy (b)" rating on shares of Novartis in a research note on Friday, July 24th. HSBC raised Novartis from a "reduce" rating to a "hold" rating and raised their price objective for the stock from $123.00 to $136.00 in a report on Thursday, September 10th. Morgan Stanley reiterated an "overweight" rating and set a $156.00 target price on shares of Novartis in a research report on Tuesday, October 6th. JPMorgan Chase & Co. reissued a "buy" rating on shares of Novartis in a report on Sunday, August 9th. Finally, Bank of America reissued a "buy" rating on shares of Novartis in a research report on Tuesday, September 8th. Six investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Novartis currently has a consensus rating of "Hold" and a consensus target price of $145.60.

Novartis Trading Down 1.0%

Shares of Novartis stock opened at $142.43 on Wednesday. The company has a current ratio of 0.86, a quick ratio of 0.67 and a debt-to-equity ratio of 0.89. The company has a fifty day simple moving average of $148.69 and a 200-day simple moving average of $150.47. The stock has a market cap of $271.78 billion, a price-to-earnings ratio of 21.48, a PEG ratio of 2.74 and a beta of 0.41. Novartis has a 12-month low of $121.57 and a 12-month high of $170.46.

Novartis (NYSE:NVS - Get Free Report) last announced its quarterly 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 firm had revenue of $14.95 billion during the quarter.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Auto Owners Insurance Co raised its holdings in Novartis by 13,687.0% during the fourth quarter. Auto Owners Insurance Co now owns 4,628,296 shares of the company's stock worth $638,103,000 after purchasing an additional 4,594,726 shares during the last quarter. WCM Investment Management LLC acquired a new stake in Novartis in the first quarter valued at $220,004,000. Arrowstreet Capital Limited Partnership purchased a new position in shares of Novartis in the fourth quarter valued at $108,638,000. Bank of America Corp DE raised its stake in shares of Novartis by 9.1% during the 1st quarter. Bank of America Corp DE now owns 4,962,794 shares of the company's stock worth $758,067,000 after buying an additional 413,778 shares during the last quarter. Finally, Ferguson Wellman Capital Management Inc. purchased a new stake in shares of Novartis in the 1st quarter worth about $27,855,000. 13.12% of the stock is owned by hedge funds and other institutional investors.

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 center on cardiovascular, renal and metabolic diseases, immunology, neuroscience, oncology and hematology. Its portfolio includes prescription medicines such as Entresto, Cosentyx, Kesimpta, Kisqali, Pluvicto, Leqvio and Jakavi, as well as other therapies for serious and chronic conditions.

Novartis serves patients and healthcare providers in markets worldwide, with operations spanning North America, Europe, Asia and other international regions.

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