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Novartis on the Street: Analyst Ratings and Recommendations

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Wall Street analysts’ estimates

Novartis (NVS) reported revenues of ~$12.4 billion and EPS (earnings per share) of $1.29 for 3Q17, which represented a growth of 2% in revenues, compared with its revenues of ~$12.1 billion in 3Q16. For 4Q17, Wall Street analysts estimate NVS to see EPS of $1.19 on revenues of ~$12.8 billion.

The above chart compares the analysts’ recommendations over the past 12 months.

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Analysts’ ratings

Novartis’s stock price has risen ~20.2% over the past 12 months. The analysts; estimates show that the stock has a potential to return ~7.6% over the next 12 months.

The analysts’ recommendations also show a 12-month target price of $93.00 per share for NVS, compared with its last price of $86.41 per share on January 18, 2018.

Analysts’ recommendations

As of January 22, 2018, of the four analysts tracking Novartis ADR, two analysts recommend a “buy,” while one analyst recommends a “hold,” and one analyst recommends a “sell.” The consensus rating for Novartis ADR is 2.50, which represents a moderate “buy” for value investors.

Of the 30 analysts tracking Novartis stock, 14 analysts recommend a “buy,” while 13 analysts recommend a “hold,” and three analysts recommend a “sell.”

Remember, the changes in analyst estimates and recommendations are typically based on the changing trends in stock price and the performance of the company. The consensus rating for Novartis stock stands at 2.47, which represents a moderate “buy” for value investors.

Notably, the BLDRS Developed Markets 100 ADR (ADRD) has 17.5% of its total investments in healthcare companies. ADRD holds 5.0% in Novartis AG ADR (NVS), 2.3% in Sanofi ADR (SNY), 2.1% in GlaxoSmithKline ADR (GSK), and 2.0% in AstraZeneca ADR (AZN).

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