Novartis upgrade, Intel downgrade part of Erste global equity changes

Erste Group analysts Hans Engel and Stephan Lingnau adjusted six ratings as part of a update on the equity markets. The prospects for a medium-term rise in the global stock market index are intact, the analysts tell investors in a research note. The firm’s preferred sectors are healthcare, consumer staples and technology. Erste upgraded Novartis (NVS) and Royal Bank of Canada (RY) to Buy from Hold while downgrading Pfizer (PFE), Cadence Design (CDNS) and Alimentation Couche-Tard (ANTCF) to Hold from Buy. The firm also cut Intel (INTC) to Sell from Hold as it sees a negative risk/reward given the company’s “quality problems and high debt.” For Novartis, the analysts sees high profit growth and a positive outlook for the second half of 2024.