NVS - Novartis Looks To Get Back On Track With Q1 Earnings

2024-04-19 11:02:48 ET

Summary

• Novartis' Q1 outlook appears stable, with expectations of a rebound from a previous quarterly miss, projecting $11.57 billion in revenue.
• Key drugs like Fabhalta and Cosentyx may drive short-term growth, counteracting potential losses from generic competition.
• Financially, Novartis shows robust health with a manageable debt-to-equity ratio and strong gross profit, positioned for stable future growth.
• Hold recommendation: Fairly priced stock with balanced risks and rewards, suggesting caution until further performance confirmation.

Novartis Q1 Outlook Amid Earnings and Regulatory Updates

I last covered Novartis ( NVS ) in February after the firm announced its intention to acquire oncology developer MorphoSys (the deal is now in the process of closing ). I believed the acquisition fit nicely into Novartis' offerings and recommended a "hold" rating. NVS stock has, essentially, traded flat since my recommendation but is notably off 13.91% within the past three months vs. returns of +5.97% for th e S&P 500 . The biotechnology sector, in general and as assessed by the SPDR S&P Biotech ETF ( XBI ), has taken a breather since late February. Back then, XBI was more than $100 per share but has since fallen to $84....

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