Novartis (NYSE:NVS) Lowered to Sell at Zacks Investment Research

Novartis (NYSE:NVSGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday, Zacks.com reports. They currently have a $94.00 target price on the stock. Zacks Investment Research‘s price target indicates a potential upside of 4.74% from the company’s current price.

According to Zacks, “Novartis has a strong and diverse portfolio. Solid momentum in key brands like psoriasis drug Cosentyx, cardiovascular drug Entresto, gene therapy Zolgensma, the oncology portfolio and the launch of Kesimpta continue to boost performance. The launch of additional drugs like Pluvicto, Piqray, Leqvio and Mayzent and the label expansion of key drugs should also aid performance. The pipeline progress is impressive, and the company has some promising candidates. However, the Sandoz division continues to affect the overall business due to pricing pressures. The strategic review (retaining the business to separation) of Sandoz is progressing, and an update is expected by the end of 2022. Generic competition for key drugs and pipeline setbacks also pose concerns. Shares have underperformed the industry year to date.”

A number of other brokerages have also recently commented on NVS. Erste Group upgraded shares of Novartis from a “hold” rating to a “buy” rating in a research report on Thursday, April 14th. Barclays lifted their target price on shares of Novartis from CHF 80 to CHF 85 in a research report on Thursday, April 14th. StockNews.com began coverage on shares of Novartis in a research report on Thursday, March 31st. They issued a “strong-buy” rating on the stock. UBS Group lifted their target price on shares of Novartis from CHF 84 to CHF 85 in a research report on Friday, April 8th. Finally, Societe Generale decreased their target price on shares of Novartis from CHF 107 to CHF 105 in a research report on Thursday, February 3rd. Three analysts have rated the stock with a sell rating, six have assigned a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $89.83.

Shares of Novartis stock traded down $0.20 on Friday, hitting $89.75. 129,122 shares of the company traded hands, compared to its average volume of 2,642,104. The firm’s 50-day simple moving average is $87.43 and its 200 day simple moving average is $85.54. The company has a current ratio of 1.51, a quick ratio of 1.29 and a debt-to-equity ratio of 0.34. The company has a market cap of $200.75 billion, a P/E ratio of 8.43, a P/E/G ratio of 2.61 and a beta of 0.55. Novartis has a 12-month low of $79.09 and a 12-month high of $95.17.

Novartis (NYSE:NVSGet Rating) last posted its quarterly earnings data on Wednesday, February 2nd. The company reported $1.40 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.44 by ($0.04). The company had revenue of $13.23 billion for the quarter, compared to analysts’ expectations of $13.25 billion. Novartis had a net margin of 46.27% and a return on equity of 24.57%. The business’s quarterly revenue was up 3.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.34 EPS. Analysts predict that Novartis will post 6.26 earnings per share for the current year.

Institutional investors and hedge funds have recently made changes to their positions in the company. AHL Investment Management Inc. bought a new stake in shares of Novartis during the 4th quarter valued at about $25,000. Arlington Partners LLC bought a new stake in Novartis during the fourth quarter worth about $27,000. PSI Advisors LLC bought a new stake in Novartis during the third quarter worth about $29,000. Dixon Hughes Goodman Wealth Advisors LLC bought a new stake in Novartis during the fourth quarter worth about $32,000. Finally, DeDora Capital Inc. bought a new stake in Novartis during the first quarter worth about $34,000. 9.72% of the stock is currently owned by hedge funds and other institutional investors.

Novartis Company Profile (Get Rating)

Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz. The Innovative Medicines segment offers prescription medicines for patients and healthcare providers. It also provides ophthalmology, neuroscience, immunology, hepatology, dermatology, respiratory, cardiovascular, renal, and metabolism medicine products.

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