Novartis "hold," estimates raised

18.07.07 - ING Financial Markets

LONDON, July 18 (newratings.com) - Analysts at ING Financial Markets maintain their "hold" rating on Novartis AG (NOT), while raising their estimates for the company. The 12-month target price is set to CHF72.

In a research note published this morning, the analysts mention that the company has reported robust 2Q07 results, with sales and operating results in-line with expectations and EPS ahead of the consensus. Novartis has reduced its guidance for the full year for net sales growth to mid-single digit and for the pharma division to low-single-digit, indicating a difficult year, the analysts say. The delays to Tasigna and Galvus are likely to continue to exert pressure on the company?s share price, ING Financial Markets adds. The continuing EPS estimate for FY07 has been raised from $3.05 to $3.20.