Novartis "buy," target price raised

25.04.07 - UBS

LONDON, April 25 (newratings.com) - Analysts at UBS maintain their "buy" rating on Novartis (NOT), while raising their estimates for the company. The target price has been raised from CHF79 to CHF82.

In a research note published yesterday, the analysts mention that the company has reported its 1Q revenues ahead of the estimates, backed by higher-than-expected revenues in all its divisions. Novartis expects to generate +5% revenue growth, with pharma operating margins targeted close to the 2006 levels, the analysts say. The EPS estimates for 2007 and 2008 have been raised by 3%.