Oddo BHF maintains its 'outperform' rating on Novartis shares, with an unchanged target price of CHF 100.

The analyst reports that as part of its R&D day held yesterday in London, Novartis revised upwards its medium-term topline guidance with a TMVA 22/27th of 5% cc vs. 4% previously (vs. consensus 4% and Oddo BHF 4.4%).

In the longer term, the Group is guiding on a mid-single digit annual growth (vs TMVA 27/30th of 0.5% for consensus and 2.9% for Oddo BHF).

The company has confirmed its pure player positioning in Innovative Medicine and its strategy centered on 4 therapeutic areas (cardiovascular/renal, oncology, neuroscience and immunology), 5 technological platforms and 4 geographic zones (USA, China, Germany, Japan).

We note the company's commitment to quality over quantity, reflected in an increase in the resources deployed per asset", says the broker.

According to Oddo BHF, 'the rerating of the share price could continue as quarterly publications, the ramp-up of products in the launch phase (Pluvicto, Scemblix, etc.) and the publication of clinical results expected in the coming quarters encourage the consensus to raise EPS'.


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