Novartis "overweight"

27.02.07 - J.P. Morgan Securities

LONDON, February 27 (newratings.com) - Analysts at JP Morgan reiterate their "overweight" rating on Novartis AG (NOT). The 12-month target price is set to CHF81.

In a research note published this morning, the analysts mention that the launch of the company?s Galvus drug is likely to be delayed to 1H09 due to the requirement of the new clinical data by the FDA. Although the delay would reduce the EPS CAGR estimate for 2006-2011 going forward, Novartis is still expected to report its EPS CAGR for the period significantly ahead of that of its peers, the analysts say. The next catalyst for the company?s share price would be the potential FDA approval for Tekturna, which is expected in mid-March, JP Morgan adds.