Novartis downgraded to Neutral from Buy at BofA

BofA downgraded Novartis to Neutral from Buy with a price target of $130, down from $135. The firm says its prior Buy thesis, predicated on both expected earnings beats and underappreciated Phase III data catalysts, has unfolded as expected. Novartis has slower catalysts in the second half of 2024 as well as some risks, the analyst tells investors in a research note. BofA sees “tail risk” from a potentially imminent Kisqali patent litigation outcome that could see up to 18% earnings downside to 2023 estimates in a worst-case scenario.