Novartis Is Awakening From Lethargy

Summary

• The street consensus anticipates 7.71% net profit CAGR over the next 5 years.
• Targeted acquisition, a likely spinoff of Sandoz and $15B share buyback underscore the commitment of investing in the core business and returning excess capital to shareholders.
• An advantageous risk-reward profile is limiting the downside while my valuation model values the stock at $117.93 with 41% upside potential.
• The company has a significant dividend yield of 3.94% and a very high-quality risk profile which makes it a rather defensive stock in difficult markets.
• Novartis is an outstanding dividend stock with an interesting price-action potential ahead, which makes it interesting for both types of investors.

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Investment thesis

While I don't focus on the dividend payout of companies, but rather on the stock price performance, Novartis has a very interesting setup in both aspects. This Swiss pharmaceutical company has maybe finally reached a turning point in which the ongoing

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