Company Profile: Novartis AG (NYSE: NVS) is a leading multinational pharmaceutical company based in Switzerland, dedicated to the research, development, manufacturing, and marketing of innovative medicines. The company employs over 109,000 individuals from more than 140 nationalities globally.
Recent Developments
Ianalumab Trial Results: On August 11, 2025, Novartis announced positive Phase III trial results for ianalumab, a novel monoclonal antibody. The drug successfully met its primary endpoints in trials for Sjögren’s disease and primary immune thrombocytopenia (ITP), positioning it as a potential first targeted treatment for Sjögren’s, a chronic autoimmune disorder with significant unmet needs.
Leqvio FDA Approval: On July 31, 2025, the FDA approved a label update for Leqvio, a cholesterol-lowering medication, allowing it to be used as a first-line monotherapy. This update enhances its utility and addresses patient adherence challenges in cholesterol management, a key risk factor for heart disease.
Market Response
Stock Ratings: Following these positive developments, Novartis received a Buy rating from Kepler Capital and Deutsche Bank, while UBS maintained a Hold rating. The stock continues to attract institutional interest, with 34 hedge funds holding stakes in the company.
Dividend Information: Novartis offers an annual dividend of $3.99 per share, making it one of the best annual dividend stocks according to hedge funds.
Investment Considerations
Comparative Analysis: While Novartis shows potential as an investment, the article suggests that certain AI stocks may offer greater upside potential and lower downside risk. A report on undervalued AI stocks is mentioned for those interested in alternative investment opportunities.
NVS
$135.26+Infinity%1D
Analyst Views on NVS
Wall Street analysts forecast NVS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVS is 129.00 USD with a low forecast of 118.00 USD and a high forecast of 140.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast NVS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVS is 129.00 USD with a low forecast of 118.00 USD and a high forecast of 140.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 135.190
Low
118.00
Averages
129.00
High
140.00
Current: 135.190
Low
118.00
Averages
129.00
High
140.00
HSBC
Reduce
maintain
$106 -> $112
2025-12-10
Reason
HSBC
Price Target
$106 -> $112
2025-12-10
maintain
Reduce
Reason
HSBC raised the firm's price target on Novartis to $112 from $106 and keeps a Reduce rating on the shares as part of a 2026 outlook for the pharma group. The firm believes the sector is well positioned to outperform in 2026, "even more so if AI panic kicks in." HSBC's preferred stocks are "growth bucket ideas," but says "fallen angels and value could work as well."
JPMorgan
Neutral -> Overweight
upgrade
2025-12-08
Reason
JPMorgan
Price Target
2025-12-08
upgrade
Neutral -> Overweight
Reason
JPMorgan upgraded Novartis to Overweight from Neutral with a price target of CHF 125, up from CHF 95. The firm adjusted ratings in the European pharma group as part of its 2026 outlook. It expects sector performance to be driven by pipeline readouts, saying much of the concern around the impact of U.S. price pressure on sector earnings has dissipated in Q4. JPMorgan downgraded companies with a lack of pipeline readouts in 2026.
Morgan Stanley
Overweight
maintain
$136 -> $143
2025-12-03
Reason
Morgan Stanley
Price Target
$136 -> $143
2025-12-03
maintain
Overweight
Reason
Morgan Stanley raised the firm's price target on Novartis to $143 from $136 and keeps an Overweight rating on the shares. The firm sees the EU Pharmaceuticals sector set up as neutral into 2026, with fundamentals intact at a low valuation premium compared to history, offset by better EPS growth elsewhere in Europe, the analyst tells investors in a year-ahead outlook note.
BofA
BofA
Neutral -> Buy
upgrade
2025-11-25
Reason
BofA
BofA
Price Target
2025-11-25
upgrade
Neutral -> Buy
Reason
BofA upgraded Novartis to Buy from Neutral with a price target of CHF 117, up from CHF 111. A long-standing overhang for investors has been the company's substantial patent cliffs into the end of the decade, with Cosentyx, Kesimpta and Kisqali, but the firm notes that the company already has several launches succeeding - including Pluvicto, Scemblix, and Leqvio - with new launches likely to add in Rhapsido and ianalumab.
About NVS
Novartis AG is a Switzerland-based pharmaceutical company. The Company develops, manufactures, and markets branded and generic prescription drugs, active pharmaceutical ingredients (APIs), biosimilars and ophthalmic products. The Company uses science and digital technologies for treatments in the disease areas of immunology, dermatology, cancer, ophthalmology, neuroscience, respiratory, cardiovascular, renal and metabolism. The business activities of the Company are divided into two segments: Innovative Medicines, which includes innovative patent-protected prescription medicines for blood pressure, cancer and other ailments, and Sandoz, which includes generic pharmaceuticals and biosimilars.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
