Novartis "buy"

14.12.06 - Dresdner Kleinwort Wasser.

LONDON, December 14 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on Novartis AG (NOVN). The target price is set to CHF85.

In a research note published yesterday, the analysts mention that the company has disposed off its non-core Medical Nutrition business for $2.5 billion to Nestle and the sale is to be completed in 2007. The analysts view this as positive, since the sale suggests that Novartis would focus on its core business. The potential approval for Tekturna is likely to be delayed by three months on account of additional data submitted to the FDA, the analysts say. Tekturna is expected to be approved in early 2007, Dresdner Kleinwort adds.