Novartis upgraded to "overweight"

01.02.07 - J.P. Morgan Securities

LONDON, February 1 (newratings.com) - Analysts at JP Morgan upgrade Novartis AG (NOT) from "neutral" to "overweight." The 12-month target price has been raised from CHF74 to CHF81.

In a research note published this morning, the analysts mention that the company is expected to generate a sales CAGR of 5% in 2006-2012, which is considerably higher than that estimated for most of the other big cap pharmaceutical firms in the EU. The analysts expect Novartis to receive FDA approval for Galvus in end-February. A delay of one-to-two years in the FDA approval for Tekturna would not significantly impact the company?s fundamental valuation, JP Morgan adds.