Novartis (NVS) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research lowered shares of Novartis (NYSE:NVS) from a hold rating to a sell rating in a research note issued to investors on Tuesday.

According to Zacks, “Novartis is mulling strategic options for Alcon which includes retaining the business separation via capital market transactions such as a spin-off or an initial public offering. The company believes that the Alcon division has revived well for now even though a separation via capital markets will create value for shareholders. The loss of patent protection for some of the key drugs in Novartis’ portfolio is a cause of concern. Moreover, Kisqali’s uptake has been slow. Shares of the company have underperformed the industry in the last three months. Nevertheless, Novartis has a strong oncology portfolio of drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu, and Kisqali. The recent approval of Kymriah for acute lymphoblastic leukemia is a major boost for Novartis given the potential in the CAR T therapy space.”

Several other equities research analysts also recently commented on NVS. Nord/LB restated a neutral rating on shares of Novartis in a research note on Tuesday. JPMorgan Chase & Co. restated a neutral rating on shares of Novartis in a research note on Tuesday, September 26th. Barclays downgraded shares of Novartis from an equal weight rating to an underweight rating in a research report on Wednesday, October 25th. Leerink Swann upped their price target on shares of Novartis from $89.00 to $91.00 and gave the stock a market perform rating in a research report on Monday, October 23rd. Finally, Bank of America downgraded shares of Novartis from a neutral rating to an underperform rating in a research report on Wednesday, December 6th. Five research analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the company. Novartis currently has an average rating of Hold and an average price target of $85.32.

Shares of Novartis (NYSE NVS) opened at $86.27 on Tuesday. Novartis has a 52 week low of $69.53 and a 52 week high of $86.90. The company has a quick ratio of 0.81, a current ratio of 1.08 and a debt-to-equity ratio of 0.32. The company has a market cap of $224,710.00, a price-to-earnings ratio of 30.70, a PEG ratio of 2.53 and a beta of 0.74.

Novartis (NYSE:NVS) last issued its earnings results on Tuesday, October 24th. The company reported $1.29 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.25 by $0.04. Novartis had a net margin of 13.73% and a return on equity of 15.77%. The company had revenue of $12.41 billion for the quarter, compared to the consensus estimate of $12.21 billion. During the same quarter in the previous year, the company earned $1.23 EPS. The firm’s revenue for the quarter was up 2.4% compared to the same quarter last year. sell-side analysts expect that Novartis will post 4.77 earnings per share for the current fiscal year.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Beach Investment Management LLC. acquired a new position in Novartis during the 2nd quarter valued at about $5,592,000. Buckingham Asset Management LLC acquired a new position in Novartis during the 2nd quarter valued at about $1,331,000. Schulhoff & Co. Inc. lifted its position in Novartis by 4.3% during the 2nd quarter. Schulhoff & Co. Inc. now owns 8,323 shares of the company’s stock valued at $694,000 after purchasing an additional 343 shares during the period. Brookstone Capital Management lifted its position in Novartis by 1.1% during the 2nd quarter. Brookstone Capital Management now owns 2,930 shares of the company’s stock valued at $245,000 after purchasing an additional 31 shares during the period. Finally, Cambridge Investment Research Advisors Inc. lifted its position in Novartis by 2.1% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 39,530 shares of the company’s stock valued at $3,300,000 after purchasing an additional 804 shares during the period. Institutional investors and hedge funds own 10.85% of the company’s stock.

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Novartis Company Profile

Novartis AG is a holding company, which provides healthcare solutions. The Company is engaged in the research, development, manufacturing and marketing of a range of healthcare products led by pharmaceuticals. The Company’s segments include Innovative Medicines, Sandoz, Alcon and Corporate activities.

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