Berenberg Ups Novartis Price Target Ahead of H2 Pipeline Data; Hold Rating Kept

03:02 AM EDT, 07/27/2026 (MT Newswires) -- Berenberg raised its price target for Novartis (NOVN.SW) ahead of anticipated key late-stage trial results for three of the Swiss pharmaceutical major's assets. "Novartis promises the most influential P3 data readouts into year-end. We expect 5-10% upside if all catalysts are positive and at least 15% downside if all catalysts are negative. Three late-stage pipeline assets are in focus: pelacarsen (cholesterol lowering), remibrutinib (multiple sclerosis and hidradenitis suppurativa) and del-desiran (DM1). Based on our discussions with investors, we conclude that expectations for positive results are high. Novartis's 2027 P/E of 16.7x is now second only to Eli Lilly [LLY.F, LLY.SW], pricing in significant pipeline value. We reiterate our Hold rating and raise our price target to CHF120 [from CHF110] to reflect solid 2Q results," according to a Monday note. The research firm said the Horizon trial for pelacarsen is "likely" to be the first readout, followed by the Remodel multiple sclerosis data for remibrutinib forecasted in the third quarter. Analysts noted the company's expectation of remibrutinib as its "largest drug," with implied peak sales of over $10 billion. Meanwhile, trial data from del-desiran's Harbor study is anticipated for a late third-quarter to early fourth-quarter release, which Berenberg views as the "first major test" for Novartis' $12 billion purchase of Avidity. Within this context, the research firm marginally raised its sales, EBIT and EPS assumptions for full-year 2026 through 2028.