Novartis: Stifel remains cautious after results
(CercleFinance.com) - Stifel believes that Novartis today published very solid figures for Q4 of an exceptional fiscal year 2024.
The analyst confirms his 'Hold' recommendation, with an unchanged target of 109 CHF.
Sales rose by 12% to 50.3bn CHF, operating profit increased by 22% (resulting in a margin of 38.7%) and core EPS jumped by 24% to 7.81 CHF, 2% above estimates, the analyst says.
This growth results from very strong underlying business momentum and the combination of very solid sales growth, driven by a significant number of multi-level efficacy drugs which continue to grow strongly (Cosentyx, Entresto, Kesimpta, Kisqali), as well as the benefit of new launches, and the result of a judicious strategy of focusing on key brands and markets, Stifel says.
This strategy is bearing fruit. One example is the ambition to gain share in the key US market. Novartis grew by 18% in this country in 2024 and now generates 42% of its sales there, the analyst adds.
All eyes were on forecasts for 2025. The first to be unveiled today are more optimistic than expected, with Novartis expecting 'mid to high figures' for sales and 'high to low double-digit' for core operating income growth. This figure is above medium-term forecasts and also around 3% above consensus.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The analyst confirms his 'Hold' recommendation, with an unchanged target of 109 CHF.
Sales rose by 12% to 50.3bn CHF, operating profit increased by 22% (resulting in a margin of 38.7%) and core EPS jumped by 24% to 7.81 CHF, 2% above estimates, the analyst says.
This growth results from very strong underlying business momentum and the combination of very solid sales growth, driven by a significant number of multi-level efficacy drugs which continue to grow strongly (Cosentyx, Entresto, Kesimpta, Kisqali), as well as the benefit of new launches, and the result of a judicious strategy of focusing on key brands and markets, Stifel says.
This strategy is bearing fruit. One example is the ambition to gain share in the key US market. Novartis grew by 18% in this country in 2024 and now generates 42% of its sales there, the analyst adds.
All eyes were on forecasts for 2025. The first to be unveiled today are more optimistic than expected, with Novartis expecting 'mid to high figures' for sales and 'high to low double-digit' for core operating income growth. This figure is above medium-term forecasts and also around 3% above consensus.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.