Barclays has upgraded its rating for Novartis (NYSE:NVS) from “underweight” to “equal weight,” according to a research report released on October 31, 2023. This shift signals increased investor confidence in the pharmaceutical giant, which is headquartered in Basel, Switzerland. The upgrade comes as part of a broader trend, with various brokerages recently reassessing their outlook on the company.
In addition to Barclays, Weiss Ratings maintained a “buy (b)” rating for Novartis on December 29, 2023. Cfra Research also raised its rating to “hold” on October 29, while Cowen reaffirmed its “hold” rating on November 10. Conversely, HC Wainwright downgraded Novartis to “neutral” on October 27, highlighting the varying perspectives among analysts. Notably, The Goldman Sachs Group has maintained a “sell” rating, reducing its target price to $118.00 from $119.00 in a report dated September 12.
Analysts have varied opinions about Novartis’ stock performance. One analyst has issued a “Strong Buy” rating, five analysts have assigned a “Buy” rating, while seven hold a “Hold” rating, and two recommend a “Sell.” Data from MarketBeat indicates that Novartis currently holds a consensus rating of “Hold” with a target price of approximately $119.75.
Novartis Earnings Report Highlights
The company recently reported its quarterly earnings on October 28, 2023. Novartis posted earnings per share (EPS) of $2.25, marginally below analysts’ consensus estimate of $2.26 by $0.01. Despite this slight miss, Novartis achieved a net margin of 26.49% and a return on equity of 41.21%.
Revenue for the quarter reached $14.36 billion, exceeding projections of $13.70 billion. This represents an 8.5% increase compared to the same period the previous year, during which the company reported an EPS of $2.06. Analysts anticipate that Novartis will report an EPS of $8.45 for the current fiscal year.
Institutional Investments in Novartis
Institutional investors have made significant moves regarding their holdings in Novartis in recent months. Keybank National Association OH increased its stake by 13.2% during the second quarter, now owning 49,377 shares valued at $5.975 million after acquiring an additional 5,742 shares.
Meanwhile, Sonora Investment Management Group LLC entered a new position in Novartis worth approximately $266,000 during the same period. Cypress Capital Group boosted its holdings by 84.1%, resulting in a total of 5,776 shares valued at $699,000.
HM Payson & Co. also made headlines by increasing its position in Novartis by 306.6% in the third quarter, owning 13,262 shares worth $1.701 million after purchasing an additional 10,000 shares. Focus Partners Wealth raised its holdings by 16.8% in the first quarter, now possessing 47,548 shares valued at $5.311 million.
Currently, institutional investors hold approximately 13.12% of Novartis’ stock, reflecting a strong institutional interest in the company.
Novartis continues to focus on research, development, and commercialization of innovative pharmaceuticals across various therapeutic areas, including oncology, immunology, cardiovascular diseases, and more. As the company navigates the complexities of the pharmaceutical market, analysts and investors alike will be closely monitoring its performance in the coming quarters.
