Novartis AG (NOVN.S): Raising EPS 2-6% and TP to CHF142 post solid 2Q results. Buy

研报英文原文证据摘录

Novartis AG (NOVN.S): Raising EPS 2-6% and TP to CHF142 post solid 2Q results. Buy

Action |

22 Jul 2026 00:00:00 ET │ 17 pages

Novartis AG (NOVN.S)

Raising EPS 2-6% and TP to CHF142 post solid 2Q results. Buy

CITI'S TAKE

Following 2Q26 EPS that beat cons by 12% (7% after accounting for one-off

phasing) we raise 26E EPS 2%, 27E 5% and 28-30E 6% and increase our TP

to CHF142. The underlying beat was despite worse generic erosion than

expected. As this annualizes in 4Q Novartis is set up for strong, above Buy

consensus earnings trajectory into 27E, in our view. Our 26E opinc (+1%cc) Price (21 Jul 26 17:30) SFr125.54is now 4% above cons and above guidance for LSD decline and 25-30E

sales CAGR 5.5% in line with NOVN 5-6% guide and above cons 4.7%. We Target price SFr142.00↑

thought commentary on 3Q PIII data catalysts (pelacarsen HORIZON and from SFr132.00

remibrutinib REMODEL trials in MS) was encouraging, with Novartis

suggesting blinded data on the latter suggests the study is “performing as Expected share price return 13.1%

expected” prompting us to raise PoS to 59% from 40%. Maintain Buy for Expected dividend yield 3.3%

EPS outperformance and positive risk-reward into 2H PIII data readouts. Expected total return 16.4%

Market Cap SFr240,885MUpbeat results call highlights EPS beat and confidence in PIII readouts — Call

focused on phasing benefit and 2H26 data catalysts - see detailed report here: 1) US$299,851M

Positive impact of one time phasing items on 2Q26 net sales was 1% and core opinc

5% suggesting underlying opinc still beat by 7%; 2) Strong Rhapsido CSU launch

(beat cons 12%) with rapid uptake and coverage continuing to improve steadily (we

raised 26/27E); 3) Novartis would see mid-teens CVRR as clinically meaningful for