NOVN:CHE - Embedded Expectations Analysis - 2018 11 07
Novartis AG (NOVN:CHE) currently trades below corporate averages relative toUAFRS-based (Uniform) Earnings, with a 15.9x Uniform P/E, implying bearish expectations for the firm. However, management is confident about Alcon, international reach, and trial results
Specifically, management is confident that Alcon continues to see strong sales growth, and that they are pleased with the progress in SMA Type 1. Moreover, they are confident that they want to see data that shows positive activity that can be attributed to their I/O compound in testing, and that their first-line setting for Cosentyx has performed exactly as they hoped. Furthermore, they are confident about their plan to utilize their manufacturing productivity and leverage their cost structure to improve margins for Alcon, and that bringing on Cellular Biomedicine Group will enable them better access to the patient population in China
Novartis is a multinational healthcare group based in Switzerland. Co. provides healthcare solutions that address the evolving needs of patients and societies worldwide. Co.'s broad portfolio includes innovative medicines, eye care products and cost-saving generic pharmaceuticals. Co.'s operations are organized along three operating divisions: Innovative Medicines Division; Sandoz Division; and Alcon Division. Co.'s operations are supported by the Novartis Institutes for BioMedical Research and Novartis Business Services.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.