What Analysts Recommend for Novartis after Q3 Earnings

Wall Street analyst estimates

Wall Street analysts estimate that Novartis will report revenues of $13.4 billion during the fourth quarter of 2018, a 4.0% increase in year-over-year revenues as compared to $12.9 billion during the fourth quarter of 2017. The earnings-per-share is estimated at $1.29 during the fourth quarter of 2018. Analysts estimate the net income margin to increase to 22.1% during the fourth quarter of 2018 as compared to 21.8% during the fourth quarter of 2017.

What Analysts Recommend for Novartis after Q3 Earnings

The above chart compares changes in analysts’ recommendations for Novartis since January 2018.

Analyst recommendations

Novartis’s stock price has increased by nearly 1.2% during the last 12 months and increased by ~3.8% in 2018 year-to-date. Further, analysts estimate the stock has a potential to return ~13.0% over the next 12 months. Wall Street analysts have a 12-month target price of $98.50 per share as compared to the last price of $87.19 per share as of October 19.

Two analysts are tracking Novartis ADR. Both these analysts are bullish on Novartis and recommend a “strong buy.” The consensus rating for Novartis ADR is 1.0, representing a “strong buy” for momentum investors.

Also, as of October 22, 27 analysts are covering Novartis stock listed on the Six Swiss Exchange. Of these, seven analysts recommend a “strong buy,” seven analysts recommend a “buy,” and 13 analysts recommend a “hold.” None of the analysts recommend a “sell.” The consensus rating for Novartis stands at 2.22, which represents a buy for long-term growth investors and value investors.

The Invesco BLDRS Europe Select ADR ETF (ADRU) holds 6.7% of its total investments in Novartis ADR (NVS), 3.1% in Sanofi ADR (SNY), 3.0% in GlaxoSmithKline ADR (GSK), and 2.4% in Novo Nordisk ADR (NVO).