Investing.com -- Deutsche Bank downgraded pharmaceutical company Novartis to "sell" from "hold" and cut its price target to CHF115 from CHF120, saying the shares have more than recovered losses from two failed drug trials.
Novartis shares have risen since its third-quarter results on October 27, helped by a broader move into pharmaceutical stocks, the bank said. It called the quarter "somewhat mixed."
The shares fell after setbacks with pelacarsen on September 7, 2026 and delucemdostat on September 8, 2026. Analyst Emmanuel Papadakis said the stock has "more than retraced" those declines and the valuation "is starting to look a little incongruous."
Deutsche Bank said the market assumes upcoming events, including a Phase 3 trial of remibrutinib in hidradenitis suppurativa and a capital markets day, will be small positives, and sees little risk through year end.
The stock trades at a price-to-earnings ratio of 31.11 and is 6% below its 52-week high of $170.46.
Novartis reported third-quarter core earnings per share of $2.46, above the $2.28 forecast, on strong sales of newer medicines and cost control. Revenue was $14.52 billion, below the expected $14.60 billion.
The company raised its profit outlook. Reported profit was hurt by a large impairment charge from a failed drug trial.
Original Article
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