Novartis: share price falls, UBS no longer buy

(CercleFinance.com) - Novartis suffered the second biggest drop in the SMI index on Thursday on the Zurich stock exchange after UBS lowered its recommendation to "no longer buy" on the stock.


One of the key elements of our investment theory was based on the fact that the existing product portfolio has the potential to enable the Group to achieve its medium-term growth targets", explains the analyst.

"We continue to believe that Kisqali, Kesimpta, Scemblix, Pluvicto and remibrutinib have this potential", he continues.

But we believe that this outlook is now well integrated into the consensus forecasts," adds UBS.

The research firm also points out that Novartis will have to contend with several patent expiries, including Entresto, Tasigna and Promacta, which it expects to lead to a marked deceleration in growth this year.

As a result, UBS has reduced its recommendation on the stock from 'buy' to 'neutral', with a price target reduced from 111 to 104 Swiss francs.

The share price fell by 0.5% in the wake of these comments, compared with a gain of 1.1% for the SMI index.

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