FY2027 EPS Estimates for Novartis Lifted by Erste Group Bank

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Novartis to $9.77 (from $9.74), which sits above the Street consensus of $8.89 per share.
• Novartis reported Q1 EPS of $1.99, missing estimates of $2.11 while revenue of $13.52 billion slightly beat expectations; the stock trades around $145 with a consensus target of $141.20 and an average rating of Hold.
• Large institutional moves include massive increases by Auto Owners Insurance and buys from Morgan Stanley and others, signaling notable institutional inflows into the stock.

Novartis AG (NYSE:NVS - Free Report) - Erste Group Bank increased their FY2027 earnings estimates for shares of Novartis in a research report issued on Tuesday, May 5th. Erste Group Bank analyst H. Engel now expects that the company will earn $9.77 per share for the year, up from their prior forecast of $9.74. The consensus estimate for Novartis' current full-year earnings is $8.89 per share.

Other equities research analysts have also issued research reports about the company. Weiss Ratings lowered Novartis from a "buy (a-)" rating to a "buy (b)" rating in a research report on Wednesday, April 29th. TD Cowen reiterated a "hold" rating on shares of Novartis in a research report on Tuesday, February 17th. Citigroup reissued a "buy" rating on shares of Novartis in a research note on Thursday, February 5th. Wall Street Zen cut Novartis from a "buy" rating to a "hold" rating in a report on Saturday, February 7th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Novartis in a research note on Thursday, February 12th. Seven analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $141.20.

Novartis Stock Down 2.0%

Shares of NYSE:NVS opened at $145.44 on Friday. Novartis has a 52-week low of $104.93 and a 52-week high of $170.46. The company has a market capitalization of $277.53 billion, a PE ratio of 20.84, a price-to-earnings-growth ratio of 2.59 and a beta of 0.46. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.65 and a current ratio of 0.85. The company has a fifty day moving average of $153.19 and a 200-day moving average of $144.31.

Novartis (NYSE:NVS - Get Free Report) last issued its earnings results on Monday, April 27th. The company reported $1.99 earnings per share for the quarter, missing analysts' consensus estimates of $2.11 by ($0.12). The company had revenue of $13.52 billion during the quarter, compared to analyst estimates of $13.44 billion. Novartis had a net margin of 24.87% and a return on equity of 38.82%. The business's quarterly revenue was down .9% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.28 EPS.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of NVS. Auto Owners Insurance Co lifted its position in shares of Novartis by 13,687.0% in the 4th 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 period. WCM Investment Management LLC bought a new stake in shares of Novartis in the 1st quarter valued at $220,004,000. Morgan Stanley increased its position in shares of Novartis by 14.9% during the fourth quarter. Morgan Stanley now owns 8,876,906 shares of the company's stock worth $1,223,860,000 after buying an additional 1,148,033 shares during the period. GQG Partners LLC raised its stake in Novartis by 39.6% during the fourth quarter. GQG Partners LLC now owns 3,158,122 shares of the company's stock worth $435,414,000 after buying an additional 895,255 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new position in Novartis during the fourth quarter worth $108,638,000. 13.12% of the stock is owned by institutional investors.

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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