(AOF) – Novartis (-0.12% to 90.88 Swiss francs) has raised its multi-year outlook. The Swiss life sciences specialist is now targeting an average annual turnover increase of 6% over the period 2023-2028 compared to 5% initially. The group highlights its “strong momentum” with 8 brands on the market with peak sales potential of $3 to $8 billion and also expects growth of 5% per year over the 2024 period. -2029.
“More than 30 high-value drugs in the pipeline” are expected to support single-digit sales growth beyond 2029.
Jefferies remains Hold on the stock with a price target of 90.99 Swiss francs. “Given the weak growth outlook for 2024, this implies that management is much more optimistic about the 2024-29 period compared to the current consensus.” For the broker, the new objectives imply a significant potential increase of 8% to 12% in the turnover consensus, for perhaps 10% to 15% possible improvements in the EBIT consensus.
Novartis sees itself “on track” to generate a core operating margin of more than 40% by 2027. The group also revised upwards the peak annual sales forecast for five drugs: Cosentyx, Kesimpta, Kisqali, Pluvicto and Leqvio.
“Novartis has completed its transformation into a fully-fledged innovative medicines company with deep expertise and capabilities in our core therapeutic areas and technology platforms,” said Vas Narasimhan, CEO of Novartis. “We have more than 15 readings enabling the submission of bids in the coming years to further strengthen our growth profile.”
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