Equities: US Tech seen rebounding after selloff – Deutsche Bank
Deutsche Bank’s US equity strategists have upgraded their stance on US technology stocks from neutral to positive following three weeks of sharp underperformance.
Deutsche Bank has reduced its rating on Novartis stock to Sell, citing valuation concerns, while maintaining a price target of CHF115.00. The downgrade comes after a mixed third quarter for the pharmaceutical company. Novartis shares have rebounded following setbacks with pelacarsen and delucemdostat, despite being supported by a market rotation into pharmaceutical stocks.
Analyst Emmanuel Papadakis noted the stock has largely regained earlier losses. Deutsche Bank believes market expectations are overly optimistic, with upcoming events like a Phase 3 trial for remibrutinib and a capital markets day expected to be modest positives. The stock currently trades at a P/E ratio of 31.11, just 6% below its 52-week high of $170.46, and is in overbought territory according to RSI indicators.
Novartis reported third-quarter earnings that beat expectations with a core EPS of $2.46, driven by strong sales of new medicines and cost control. However, revenue fell slightly short of forecasts at $14.52 billion. The company raised its profit outlook, despite a significant impairment charge from a failed drug trial.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
