Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com -- Morgan Stanley (NYSE:MS) on Friday issued contrasting ratings changes for two of Switzerland’s pharmaceutical giants, upgrading Novartis AG (SIX:NOVN) while cutting Roche Holding AG (OTC:RHHVF).
The brokerage cited stronger growth prospects and pipeline potential at Novartis, while pointing to competitive and development headwinds at Roche.
Novartis AG (NYSE:NVS) was raised to “equal-weight” from “underweight,” with its Swiss price target lifted to SFr 100 from SFr 91, and its U.S. target increased to US$123 from US$110.
The upgrade reflects Morgan Stanley’s view of a higher quality of growth, upside from commercial execution, and strength in the company’s drug pipeline.
Analysts also flagged the firm’s strong balance sheet and cash flow, which could enable acquisitions to bridge revenue gaps from expected patent expirations in the early 2030s.
In contrast, Roche Holding AG was downgraded to “underweight” from “equal-weight.” Its Swiss price target was reduced to SFr 245 from SFr 286, while the U.S. target was lowered to US$39 from US$44.
Morgan Stanley cited intensifying competition, setbacks in new product launches, and high-risk pipeline readouts as key factors behind the downgrade.
The brokerage also noted that pipeline momentum is expected to remain sluggish into 2026.