Novartis downgraded to "hold"

09.09.08 - Deutsche Bank

LONDON, September 9 (newratings.com) - Analyst Michael Leuchten of Deutsche Bank downgrades Novartis AG (NOT) from "buy" to "hold." The target price has been reduced from CHF65 to CHF64.

In a research note published this morning, the analyst mentions that the consensus expectations for the company?s earnings have now reached reasonable levels. This makes earnings surprises from Novartis less likely, the analyst says. The company is likely to face potential near-term issues at its Sandoz segment and its pipeline is unlikely to drive stock multiple improvement going forward, Deutsche Bank adds.