Novartis (NVS) recently announced a 6.1% dividend increase to CHF 3.50 per share, marking its 28th consecutive increase, with a dividend yield of 3.5%. This positive news, combined with the company's focus on next-generation anti-obesity drugs, positions NVS well in a growing market.
The stock closed at 115.57 on March 7, with a 20-day SMA of 108.92, indicating recent strength. However, the RSI of 75.85 suggests overbought conditions, and the Stochastic Oscillator is at 92.66, signaling potential pullback. The MACD is positive but weakening, with the histogram declining.
Key levels include resistance at 116.63 and 119.86, with support at 108.17 and 106.17. The stock is approaching the first resistance level, which may act as a barrier.
Given the overbought conditions and approaching resistance, NVS may experience a pullback. The predicted price for the next trading week is $113.50.
Consider selling or holding off on purchases as the stock approaches resistance and shows signs of potential consolidation.
The price of NVS is predicted to go up -3.76%, based on the high correlation periods with AMGN. The similarity of these two price pattern on the periods is 96.89%.
NVS
AMGN
Year
NVS Price Forecast($)
Potential Return(%)
2025
98.040
0.410
2026
125.000
14.630
2027
140.000
28.380
2028
145.000
32.970
2029
145.000
32.970
2030
180.000
65.060
Novartis' solid late-stage pipeline should propel long-term growth. The company should launch several new drugs during the next several years in critical therapeutic areas such as rare diseases and oncology.
Novartis recently divested its Roche share, yielding over $20 billion, which provides the firm with increased options to re-deploy capital including share buybacks.
Novartis' research and development focuses on areas of unmet medical need, which should yield several innovative therapies with strong pricing power.
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Price Target
n/a
Downside
0%
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Price Target
n/a
Downside
0%