Wall Street Zen Downgrades Novartis (NYSE:NVS) to Hold

Novartis (NYSE:NVS) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

A number of other equities research analysts have also recently issued reports on the stock. Barclays raised shares of Novartis from an “underweight” rating to an “equal weight” rating in a report on Tuesday, January 6th. Bank of America upgraded Novartis from a “neutral” rating to a “buy” rating in a research note on Tuesday, November 25th. TD Cowen reiterated a “hold” rating on shares of Novartis in a research note on Monday, November 10th. Weiss Ratings restated a “buy (b)” rating on shares of Novartis in a research note on Monday, December 29th. Finally, JPMorgan Chase & Co. raised shares of Novartis from a “neutral” rating to an “overweight” rating in a research report on Monday, December 8th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $119.75.

Novartis Trading Up 1.6%

Shares of Novartis stock opened at $156.41 on Friday. The stock has a market cap of $330.40 billion, a P/E ratio of 21.85, a P/E/G ratio of 2.35 and a beta of 0.50. The company has a quick ratio of 0.89, a current ratio of 1.12 and a debt-to-equity ratio of 0.60. Novartis has a 12-month low of $97.71 and a 12-month high of $156.62. The business’s 50 day moving average is $140.72 and its 200-day moving average is $131.00.

Novartis (NYSE:NVS) last issued its earnings results on Wednesday, February 4th. The company reported $2.03 earnings per share for the quarter, topping analysts’ consensus estimates of $1.99 by $0.04. Novartis had a net margin of 25.65% and a return on equity of 40.53%. The business had revenue of $524.00 million for the quarter, compared to the consensus estimate of $13.85 billion. During the same period in the previous year, the company earned $1.98 earnings per share. The firm’s revenue for the quarter was up 1.4% on a year-over-year basis. Equities research analysts predict that Novartis will post 8.45 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Novartis

Several hedge funds have recently modified their holdings of the company. Raymond James Financial Inc. raised its position in Novartis by 77.7% in the third quarter. Raymond James Financial Inc. now owns 1,648,174 shares of the company’s stock valued at $211,362,000 after purchasing an additional 720,860 shares during the last quarter. CIBC Bancorp USA Inc. acquired a new position in shares of Novartis in the third quarter valued at approximately $64,563,000. Bank of Montreal Can raised its holdings in Novartis by 85.0% in the 3rd quarter. Bank of Montreal Can now owns 1,045,191 shares of the company’s stock valued at $134,035,000 after buying an additional 480,201 shares during the last quarter. Fisher Asset Management LLC boosted its position in Novartis by 5.3% during the 2nd quarter. Fisher Asset Management LLC now owns 7,121,414 shares of the company’s stock worth $861,762,000 after buying an additional 358,282 shares during the period. Finally, Balyasny Asset Management L.P. grew its holdings in Novartis by 52.9% during the 2nd quarter. Balyasny Asset Management L.P. now owns 876,956 shares of the company’s stock worth $106,120,000 after acquiring an additional 303,553 shares during the last quarter. Institutional investors and hedge funds own 13.12% of the company’s stock.

Trending Headlines about Novartis

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Q4 EPS beat and 12‑month high — Novartis reported adjusted EPS of $2.03 vs. consensus $1.99 and the stock hit a new 12‑month high as investors took the beat and margin strength as a signal of underlying profitability. Novartis Reaches New 12-Month High Following Strong Earnings
• Positive Sentiment: Record margins: management highlighted record core operating margins on the earnings call, helping offset topline softness and supporting EPS and free‑cash‑flow expectations. Novartis Earnings Call: Record Margins
• Positive Sentiment: Analyst target moved higher — at least one published target was increased (~11%), reinforcing the bullish reaction from the Street. Price Target Increased
• Positive Sentiment: Shareholder returns — Novartis declared an annual dividend of $4.773/share (record Mar 11, pay Mar 16), and commentary noted ongoing buybacks that support EPS and valuation.
• Positive Sentiment: Pipeline and value thesis — analysts and investors point to a deep pipeline, upcoming clinical readouts and active buybacks as reasons Novartis may re‑rate from current multiples. Novartis: Value Price, Growth Pipeline
• Neutral Sentiment: Earnings call transcripts and slides available — full Q4 call transcript and the investor presentation provide detail on product trends, margin drivers and near‑term catalysts for modeling. Q4 2025 Earnings Call Transcript Q4 Results Presentation
• Negative Sentiment: Revenue miss and generic pressure — Q4 revenue fell short as generic competition pressured Entresto and Promacta sales; revenue weakness is a near‑term headwind to top‑line growth expectations. Revenue Miss / Generic Pressure
• Negative Sentiment: ESG and sustainability risk flagged — Novartis disclosed new environmental/social risks that could affect reputation, financing or long‑term valuation if not addressed. ESG and Sustainability Risks

Novartis Company Profile

Novartis is a Swiss multinational pharmaceutical company headquartered in Basel that researches, develops, manufactures and commercializes prescription medicines and related health-care products. Formed through the 1996 merger of Ciba-Geigy and Sandoz, Novartis operates globally and focuses on bringing therapeutics from discovery through clinical development to commercial markets worldwide.

The company’s activities center on innovative pharmaceuticals across several therapeutic areas, including oncology, immunology, cardiovascular and metabolic diseases, neuroscience and ophthalmology, alongside capabilities in advanced therapies such as biologics, cell and gene therapies.