Novartis
Note: This is a daily stock update and the information stands true as of 17/07/25, 09:00 CET.
Company Update:
Expert Opinion:
100% aligned with our analyst (Please contact our sales team below to book a call). Novartis' momentum remains good but as it trades on PE25 and 26 of 17.3x and 17x respectively, our expert likes Roche better on the back of relative valuation and similar intrinsic qualities.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
Sales came in at $14.1bn, up 11% lfl. This was in line with the consensus and a 1% beat vs our estimates.
EBIT (Core Operating Income) was up c.21% to $5.9bn, 2% better than an already bullish consensus.
Guidance 25 upgraded: COI is now expected to grow by low-teens percentage (vs. low-double digit), while sales are still anticipated to increase by high single-digit percentage (unchanged).
Overall, while we review our model, we continue to see upside in Novartis’ shares, backed by robust growth momentum across key areas, a large pipeline and R&D execution track record, and a healthy balance sheet (2025e net debt-to-EBITDA of 1.3x). Having said that, considering the relative valuation levels and the risk-reward balance, we see more upside on its Swiss peer Roche.
100% aligned with our analyst (Please contact our sales team below to book a call). Novartis' momentum remains good but as it trades on PE25 and 26 of 17.3x and 17x respectively, our expert likes Roche better on the back of relative valuation and similar intrinsic qualities.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Weak Q2 earnings as expected - FY Production guidance upgraded.
