Novartis "hold," target price reduced

13.07.06 - ING Financial Markets

LONDON, July 13 (newratings.com) - Analysts at ING Financial Markets maintain their "hold" rating on Novartis (NOVN). The target price has been reduced from CHF76 to CHF74.

In a research note published this morning, the analysts mention that the company is expected to post its 2Q EPS, scheduled to be reported on July 17, at $0.795. The analysts expect Novartis' results for the quarter to have been adversely affected by the recent closure of the Chiron acquisition and restructuring costs associated with the acquisition. According to ING Financial Markets, Novartis' underlying trends are stable and the company is expected to have achieved 9.9% pharmaceuticals sales growth during the quarter.