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Investing.com - Deutsche Bank (ETR:DBKGn) raised its price target on Novartis (NYSE:NVS) (SIX:NOVN) to CHF120.00 from CHF115.00 on Thursday, while maintaining a Buy rating on the Swiss pharmaceutical company.
The price target increase follows positive Phase 3 trial results for ianalumab, one of Novartis’s key pipeline opportunities that Deutsche Bank believes could help offset upcoming patent expirations. The bank described ianalumab as a "medium revenue-bracket but high-multiple opportunity" critical to the company’s mid-term outlook.
Deutsche Bank noted that while more successes will be needed to ensure Novartis can achieve its post-2029 revenue guidance, the ianalumab trial results represent "a good start" for the company’s pipeline development efforts.
The 4% price target increase reflects both positive revenue implications from the ianalumab trials and the multiple expansion Deutsche Bank believes is justified by this clinical success. The new target is based on a 17x FY25 price-to-earnings ratio.
Ianalumab is part of what Deutsche Bank calls Novartis’s "key triumvirate of pipeline opportunities" that could help the pharmaceutical company navigate through near-term patent challenges.
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