(CercleFinance.com) – Jefferies maintains its Buy recommendation and its price target of CHF 100 on the Novartis share.
‘The changes resulting from the ongoing reorganization are obvious,’ begins the analyst, citing the reduction of expenditure in non-priority areas as an example. But clarity remains ‘limited on disposals compared to cash cows’.
For Jefferies, action must be taken quickly ‘to reduce headcount by November to minimize disruption, and benefit from the transition to a single portfolio including oncology, tailored to each country’.
‘The 11x 2024 price-to-earnings ratio and 4% dividend yield, along with the $8 billion buyback,’ Jefferies continues, ‘leads us to believe the downside is limited, but there are room for updates to consents and improved catalysts’.
The objective displayed by Novartis to go from n°10 to n°5 in the United States by 2027 seems “ambitious” to the analyst who notes despite all the desire to focus on the American market.
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