Novartis "neutral"

23.10.06 - J.P. Morgan Securities

LONDON, October 23 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on Novartis (NOT). The target price is set to CHF74.

In a research note published this morning, the analysts mention that the company has reported robust 3Q results, backed by significant Pharma sales and margins. A disappointing performance by Sandoz, on account of higher-than-anticipated pricing pressure in Germany, has led Novartis to report its EBIT for the quarter in-line with the consensus, the analysts say. Novartis' margins could contract on account of the launch of the company's two potential blockbusters in 2007, JP Morgan adds.