Update shared on03 Oct 2025
Fair value Increased 1.63%Analysts have raised their fair value estimate for Novartis from $97.49 to $99.08. They cite improved revenue growth projections, even though profit margin expectations have decreased slightly.
What's in the News
- Novartis AG's Rhapsido (remibrutinib) received FDA approval as the first Bruton's tyrosine kinase inhibitor for chronic spontaneous urticaria in adults whose symptoms persist despite H1 antihistamines (Key Developments).
- Plans announced for a direct-to-patient platform launching November 1, 2025. This platform will allow US patients prescribed Cosentyx to purchase it at a 55% discount off the list price (Key Developments).
- Novartis will present new clinical data from 34 abstracts across its oncology portfolio at the upcoming ESMO Congress 2025, highlighting significant trial results for PluVicto and other therapies (Key Developments).
- Positive results reported for ianalumab (VAY736) in Phase III trials for Sjogren's disease, with plans to submit for global regulatory approvals (Key Developments).
- Mukul Mehta appointed as Novartis's next Chief Financial Officer, succeeding Harry Kirsch effective March 16, 2026 (Key Developments).
Valuation Changes
- Fair Value Estimate has increased slightly, rising from CHF 97.49 to CHF 99.08.
- Discount Rate remains unchanged at 3.82%.
- Revenue Growth projections have improved, moving from 2.39% to 3.09%.
- Net Profit Margin expectations have declined modestly, from 29.40% to 28.84%.
- Future Price-to-Earnings Ratio (P/E) has risen from 11.0x to 14.0x. This reflects updated growth and profitability assumptions.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.