Novartis "buy," target price raised

22.11.06 - Dresdner Kleinwort Wasser.

LONDON, November 22 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on Novartis (NOT), while raising their estimates for the company. The target price has been raised from CHF80 to CHF85.

In a research note published this morning, the analysts mention that the company?s performance going ahead is likely to be driven by the recent drug launches. Sales of Tekturna and Galvus could exceed $2 billion and reach $2.8 billion, respectively, by 2011, the analysts say. Sales of Exforge could reach $800 million by 2012, Dresdner Kleinwort adds. The EPS estimates for 2007 and 2008 have been raised by 7% to $3.66 and by 12% to $4.09, respectively, to reflect robust sales and better-than-expected synergies from the Chiron acquisition.