Novartis AG's fundamentals are relatively healthy, with an industry-leading ESG disclosure.and its growth potential is high.Its valuation is considered fairly valued, ranking 37 out of 159 in the Pharmaceuticals industry.Institutional ownership is very high.Over the past month, multiple analysts have rated it as Hold, with the highest price target at 132.08.In the medium term, the stock price is expected to trend up.The company has been performing well in the stock market over the past month, which is supported by its strong fundamentals and technicals.The stock price is trading sideways between the support and resistance levels, making it suitable for range-bound swing trading.
Media Coverage
Novartis AG is a Swiss multinational pharmaceutical corporation headquartered in Basel, Switzerland. It stands as one of the largest pharmaceutical companies globally and ranked eighth by revenue in 2024.
The company manufactures various medications, including clozapine, diclofenac, carbamazepine, valsartan, imatinib mesylate, cyclosporine, letrozole, methylphenidate, terbinafine, deferasirox, among others.
Founded in 1996 through the merger of Ciba-Geigy and Sandoz, it was regarded as the largest corporate merger at that time. The pharmaceutical and agrochemical divisions from both companies combined to create Novartis as an independent entity. The name "Novartis" is derived from the Latin words translating to "new arts."
Following the merger, several businesses from Ciba-Geigy and Sandoz were sold or spun off as independent entities, like Ciba Specialty Chemicals. Although the Sandoz brand vanished for three years, it was reintroduced in 2003 when Novartis merged its generic drug divisions into a single subsidiary named Sandoz. In 2000, Novartis divested its agrochemical and genetically modified crops sector by spinning out Syngenta in collaboration with AstraZeneca, which also shed its agrochemical division. The company has since pursued multiple acquisitions to bolster its core businesses.
Novartis is a full member of various notable organizations, including the European Federation of Pharmaceutical Industries and Associations, the Biotechnology Innovation Organization, the International Federation of Pharmaceutical Manufacturers and Associations, and the Pharmaceutical Research and Manufacturers of America. Presently, Novartis ranks as the third most valuable pharmaceutical company in Europe, following Novo Nordisk and Roche.
The current financial score of Novartis AG is 8.66, ranking 48 out of 159 in the Pharmaceuticals industry. Its financial status is stable, and its operating efficiency is high. Its latest quarterly revenue reached 13.86B, representing a year-over-year increase of 2.23%, while its net profit experienced a year-over-year increase of 14.51%.
Key Metrics
The current valuation score of Novartis AG is 7.95, ranking 38 out of 159 in the Pharmaceuticals industry. Its current P/E ratio is 21.69, which is 39.67% below the recent high of 30.29 and 48.06% above the recent low of 11.26.
The current earnings forecast score of Novartis AG is 6.22, ranking 132 out of 159 in the Pharmaceuticals industry. The average price target is 118.00, with a high of 147.42 and a low of 102.36.
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.
The current price momentum score of Novartis AG is 9.77, ranking 6 out of 159 in the Pharmaceuticals industry. Currently, the stock price is trading between the resistance level at 161.92 and the support level at 145.61, making it suitable for range-bound swing trading.
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The current institutional shareholding score of Novartis AG is 3.00, ranking 93 out of 159 in the Pharmaceuticals industry. The latest institutional shareholding proportion is 7.08%, representing a quarter-over-quarter increase of 0.30%. The largest institutional shareholder is Van Duyn Dodge & E. Morris Cox, holding a total of 10.59M shares, representing 0.55% of shares outstanding, with 8.54% decrease in holdings.
The U.S. Dollar Index is currently in a neutral state, which has a neutral effect on the Pharmaceuticals domestic-focused industry. The Dollar Index (DXY) measures the value of the U.S. dollar against a basket of major currencies, including the euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc. The current risk assessment score of Novartis AG is 9.85, ranking 5 out of 159 in the Pharmaceuticals industry. The company's beta value is 0.50. This indicates that the stock tends to underperform the index during upward trending markets but experiences smaller declines during downward trending markets. with an industry-leading ESG disclosure.
