Deutsche Bank Downgrades Novartis to “Hold” (NVS)

By Staff,

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On Wednesday analysts at Deutsche Bank downgraded pharmaceutical company Novartis ( NVS ) as it does not see the company keeping up with its past outperformance of consensus expectations.

The analysts downgraded NVS from "Buy" to "Hold."

An analysts at Deutsche Bank commented, "Previously we were buyers of Novartis as its industry leading innovation had the potential to beat low consensus expectations. Despite some set-backs, the pipeline generally has delivered, and we expect this to continue going forward. Together with the shares' recent good performance, our concern is that consensus not only factors in pipeline success but now overshoots our long-term earnings forecasts. As such, we downgrade to Hold from Buy, expecting modest share price upside in 2013."

Novartis shares were up 30 cents, or +0.46%, in premarket trading on Wednesday.

The Bottom Line
Shares of Novartis ( NVS ) have a 3.89% dividend yield, based on last night's closing stock price of $63.20. The stock has technical support in the $58-$60 price area. The shares are trading near its all-time highs.

Novartis ( NVS ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: NVS

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