Novartis (NVS) Named Top Global Pharma Pick at Jefferies

Jefferies named Novartis (NYSE: NVS) its Top Global Pick with 2016 guidance likely a great entry point for a recovery in the stock price.

Analyst Jeffrey Holford commented - "We see an attractive entry point into Novartis around 2016 guidance, ahead of our anticipated pick up in the Enresto launch (from Mar'16) and positive data for LEE011 (H1'16) and Relaxin (mid-16). Whilst 2016 is a challenging year for guidance (Glivec, Alcon), we believe that consensus has begun to reflect this and valuation has already more than discounted for it. We see guidance as a great entry point for a recovery on more positive catalysts."

The firm remain very bullish on Eli Lilly & Co. (NYSE: LLY) (2nd), AbbVie (NYSE: ABBV) (3rd) and Pfizer (NYSE: PFE) (4th), though these look more likely to do well from mid to H2'16 rather than in H1'16 in their view.

They said Bristol-Myers Squibb (NYSE: BMY) could do well near term on Opdivo ramp/ PII pivotals, but they think long term valuation still doesn't support a Buy rating.

Johnson & Johnson (NYSE: JNJ), Merck (NYSE: MRK), Novo (NYSE: NVO) and GlaxoSmithKline (NYSE: GSK) are their least preferred stocks.

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