Novartis "overweight," estimates raised

14.11.07 - J.P. Morgan Securities

LONDON, November 14 (newratings.com) - Analysts at JP Morgan reiterate their "overweight" rating on Novartis AG (NOVN), while raising their estimates for the company. The 12-month target price is set to CHF77.

In a research note published this morning, the analysts mention that the company?s 3Q results exhibit that the robust performance of the Vaccines and Sandoz business helped offset the negative impact of the loss of patent protection for three products. Novartis has announced a cost savings programme, which would lead to 1260 job cuts and yield annual savings of $230 million. The adjusted EPS estimates for 2007 and 2008 have been raised from CHF3.63 to CHF3.70 and from CHF3.99 to CHF4.11, respectively.