Canadian bank RBC initiated coverage of Novartis on Tuesday with a Sector Perform rating and a 120 Swiss franc price target, according to a research note.
Analyst Trung Huynh said the unexpected failure of a study involving the drug Pelacarsen and a setback at DM1 had left marks on the share price. The developments underscore the clinical execution risk associated with Novartis reaching its revenue forecast, he wrote.
Huynh added that successes in closing the company's patent gap would be needed before the stock could be viewed more constructively.
The original research note was published at 16:04 EDT on 8 September 2026, with first redistribution at 16:05 EDT.
