Novartis "buy"

19.01.07 - Dresdner Kleinwort Wasser.

LONDON, January 19 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on Novartis AG (NOT). The target price is set to CHF85.

In a research note published this morning, the analysts mention that that growth in US scripts in 2006 was the strongest in the past several years. In 2007, regulatory risk is likely to be the main issue for the performance of the stocks of drug companies, the analysts say. Investors are expected to benefit from holding on to drug stocks with potential near-term product approvals, such as Novartis, Dresdner Kleinwort adds.