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Investing.com - Morgan Stanley (NYSE:MS) upgraded Novartis (NYSE:NVS) from Underweight to Equalweight on Friday, while raising its price target to $100.00 from $91.00.
The investment bank cited Novartis’s improved mid-term growth profile compared to its peer Roche, projecting 4% sales and EBIT growth for Novartis between 2025-2028 versus 3% for Roche.
Morgan Stanley highlighted Novartis’s potential for upside surprises from better commercial execution on key growth drivers and a more promising catalyst path in the pharmaceutical sector.
The firm expressed confidence in Novartis’s bolt-on M&A strategy focused on mid-size assets supporting its four key therapeutic areas, suggesting this approach is better positioned to address loss of exclusivity (LOE) challenges expected at the turn of the decade.
While upgrading Novartis, Morgan Stanley maintained its preference for AstraZeneca (NASDAQ:AZN) among European large-cap pharmaceutical companies, citing its growth at a reasonable price and more manageable long-term LOE risk.
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