Novartis: UBS trims price target
(CercleFinance.com) - UBS has trimmed its price target for Novartis from 96 Swiss francs to 95 Swiss francs on Wednesday, saying that 2021 could be "a game of two halves.
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In a note sent to clients, the broker pointed out that the drugmaker last week guided to low-to-mid single digit sales growth this year, with mid-single digit core net income growth, excluding currency fluctuations.
However, "things can progress either faster or slower than we first imagine and think the guidance leaves room for both," UBS warned, while maintaining a "buy" rating on the stock.
The broker said it expects margins to continue improving in 2021, although a less impressive bump, even though it sees several catalysts coming in the first half of the year.
The Novartis shares are currently up 0.7% in Zurich.
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