In a report released today, Thibault Boutherin from Morgan Stanley upgraded Novartis AG to a Buy, with a price target of CHF110.00.
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Thibault Boutherin has given his Buy rating due to a combination of factors that highlight Novartis AG’s potential for future growth. Despite a recent decline in stock value following a Q3’25 sales and earnings miss, Boutherin emphasizes that the setback is largely due to temporary issues with certain products losing exclusivity, while key growth drivers have exceeded expectations. This shift in product mix is expected to enhance the quality of growth in the mid-term, with Boutherin’s forecasts for these growth drivers being significantly above consensus.
Furthermore, Boutherin points to the upcoming launch of Rhapsido (remibrutinib) as a pivotal factor in Novartis’s growth story, projecting substantial revenue potential across various indications. The analyst also notes that while growth in 2026 might be modest, there is an anticipated acceleration from 2027 onwards, supported by strategic pipeline execution and potential mergers and acquisitions. This outlook is further bolstered by an expected positive update at the upcoming Capital Markets Day, framing a favorable long-term growth trajectory for Novartis.
In another report released on October 29, Deutsche Bank also maintained a Buy rating on the stock with a CHF120.00 price target.