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Novartis AG - Stock Quote NOVN

Rating as of

Morningstar's Novartis AG Stock Analysis

Valuation
Currency in CHF
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Novartis’ Q1 Slightly Below Our Expectations, but Outlook Is Steady and Shares Appear Fairly Valued

Damien Conover, CFA Sector Director

Analyst Note

| Damien Conover, CFA |

Novartis reported first-quarter results slightly below our projections, but we don’t expect any major change to our fair value estimate. We continue to view the stock as fairly valued, with the late-stage pipeline and currently marketed portfolio offsetting patent losses over the next several years. We project close to 2% annual sales growth over the next five years with some margin improvement driving faster earnings growth. This solid midterm outlook combined with a strong early and mid-stage pipeline help reinforce the firm’s wide moat rating.

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Novartis AG's Company Profile

Business Description

Novartis AG develops and manufactures healthcare products through two segments: Innovative Medicines and Sandoz. It generates the vast majority of its revenue from Innovative Medicines segment consisting global business franchises in oncology, ophthalmology, neuroscience, immunology, respiratory, cardio-metabolic, and established medicines. The firm sells its products globally, with the United States representing close to one third of total revenue.

Contact
Lichtstrasse 35
Basel, 4056, Switzerland
T +41 613241111
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 104,323