Novartis: Oddo confirms buy rating

(CercleFinance.com) - Oddo deems that the company reported Q2 results that were below expectations in terms of sales (3.
7% below consensus), although in line in terms of Core EPS. Group sales fell by 1% at constant currencies (cc) (Pharma +1% cc/Sandoz -9% cc), having been negatively impacted by purchases made in Q1.

Operating core EBIT grew 6% cc (1.3% vs. Cs), thanks to lower expenses and an improved gross margin, analysts said.

Novartis has tightened its forecast ranges for continued operations in 2020, with projected "mid-single-digit" net sales growth and "low double-digit" growth in core operating income.

Oddo's estimates are in line with this guidance, recording a +6.6% increase in Core EBIT, vs. +7.6% for consensus, the broker adds. It hence maintains its buy recommendation on the share with a target price of 97 Swiss francs.


Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.