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A Look at Novartis Stock in May

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A look at Novartis

Headquartered in Basel, Switzerland, Novartis (NVS) is a pharmaceutical company specializing in research, development, manufacturing, and marketing of a broad range of healthcare products. It reports in the following three segments:

  • Innovative Medicines
  • Sandoz, the generics business
  • Alcon, the eye care business

The above chart compares the changes in analysts’ recommendations for Novartis over the last 12 months.

Stock performance

Novartis stock fell 0.9% in May. It has fallen 10% year-to-date as of June 4.

Analysts’ recommendations

Wall Street analysts estimate that NVS stock has the potential to return 16.6% over the next 12 months. Their recommendations show a 12-month target price of $88.17 per share compared to $75.60 on June 1.

There are four analysts tracking Novartis ADR (American depositary receipts). One of them is recommending a “strong buy,” one is recommending a “buy,” one is recommending a “hold,” and one is recommending a “sell.”

There are 28 analysts tracking Novartis stock on the Six Swiss Exchange. Seven of them have recommended a “strong buy,” eight have recommended a “buy,” 11 have recommended a “hold,” and two have recommended a “sell.” The consensus rating for Novartis is 2.3, which represents a “strong buy” for value investors and a “moderate buy” for long-term investors.

Analysts’ revenue estimates

Novartis’s revenues are mainly driven by the strong performance of its Innovative Medicines segment. Sandoz and Alcon have also contributed to the company’s overall growth.

Wall Street analysts estimate revenues of $13.2 billion for Novartis in the second quarter. That would be a 7.8% growth year-over-year. They expect EPS of $1.34.

The First Trust Value Line Dividend ETF (FVD) holds 0.5% in Novartis (NVS), 0.5% in Johnson & Johnson (JNJ), 0.5% in Sanofi ADR (SNY), and 0.5% in Pfizer (PFE).

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