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Novartis ADR’s Performance and Revenue Estimates for Q3 2018

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A look at Novartis

Headquartered in Basel, Switzerland, Novartis (NVS) specializes in research and development, manufacturing, and marketing of a broad range of healthcare products. The company’s three segments are Innovative Medicines, Sandoz, and Alcon. Sandoz is Novartis’s generics business, and Alcon is its eye care business.

The chart below compares the EPS and revenues for Novartis since the first quarter of 2017, as well as its estimates for the third quarter.

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Stock performance and recommendations

Novartis’s (NVS) stock price has increased ~14.3% in the third quarter, and its stock rose ~2.8% year-to-date on October 2.

Wall Street analysts expect Novartis to return ~14.1% over the next 12 months. Analysts’ recommendations show a 12-month target price of $98.50 per share compared to its October 1 price of $86.33 per share.

Two analysts track Novartis’s ADR, and both recommend a “strong buy.” The stock didn’t receive any “hold” or “sell” recommendations.

Also, 26 analysts track Novartis stock on the SIX Swiss Exchange. Seven analysts recommend a “strong buy,” eight analysts recommend a “buy,” and 11 analysts recommend a “hold.” None of the analysts recommend a “sell.” The consensus rating for Novartis stands at 2.15, which represents a “strong buy” for long-term investors.

Analysts’ revenue estimates

Novartis’s (NVS) revenues are primarily driven by the strong performance of its Innovative Medicines segment, followed by Sandoz and Alcon. Analysts expect Novartis to report EPS of $1.31 on revenues of $13.0 billion in the third quarter. This represents ~5.0% revenue growth, compared to $12.4 billion in the third quarter of 2017.

The Invesco BLDRS Europe Select ADR ETF (ADRU) holds 6.5% of its total investments in Novartis ADR (NVS), 3.0% in Sanofi ADR (SNY), 2.9% in AstraZeneca ADR (AZN), and 1.6% in Shire ADR (SHPG).

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