(NOVN) Novartis - Ratings and Ratios

Novartis AG (SW:NOVN) is a global pharmaceutical leader headquartered in Basel, Switzerland, specializing in the research, development, and commercialization of innovative medicines. The company operates across multiple therapeutic areas, including cardiovascular, renal and metabolic, immunology, neuroscience, oncology, and hematology. Its product portfolio includes blockbuster drugs such as Entresto, a first-in-class angiotensin receptor-neprilysin inhibitor for heart failure; Cosentyx, a IL-17 inhibitor for immune-mediated diseases; and Kisqali, a CDK4/6 inhibitor for HR+/HER2- breast cancer. The company also markets Jakavi for myeloproliferative neoplasms, Ilaris for rare inflammatory diseases, and Zolgensma, a groundbreaking gene therapy for spinal muscular atrophy. Novartis has a strong pipeline, with recent launches like Pluvicto for prostate cancer and Scemblix for CML, alongside strategic collaborations, such as its partnership with Alnylam Pharmaceuticals for Leqvio, an siRNA-based LDL cholesterol-lowering therapy.

The companys financial performance reflects its diversified portfolio and operational efficiency. With a market capitalization of 181.767B CHF, Novartis trades at a P/E of 17.89, with a forward P/E of 12.82, indicating expectations of future earnings growth. Its price-to-book ratio of 4.71 highlights its asset valuation, while the P/S ratio of 3.51 reflects its revenue generation capabilities. Return on equity stands at 27.11%, showcasing strong profitability. Technically, the stock is trading below its 20-day and 50-day moving averages of 93.07 and 94.50, respectively, with an ATR of 2.57, signaling moderate volatility.

Over the next three months, based on technical and fundamental analysis:

• Price Outlook: The stock is likely to test support near 88.00, with resistance at 94.50. The 20-day SMA (93.07) and 50-day SMA (94.50) suggest bearish momentum in the near term.
• Earnings Growth: Expectations of 5-7% revenue growth in Q3, driven by strong demand for Cosentyx and Entresto, may support the stock price. The forward P/E of 12.82 indicates investor confidence in future earnings.
• Volatility: ATR of 2.57 suggests price fluctuations of ±4-5% over the quarter, with potential downside risks if the stock breaks below 88.00.

Category: Pharmaceuticals