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Top Research Reports for Novartis, AbbVie & Sanofi

Mark Vickery

Wednesday, December 11, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Novartis (NVS), AbbVie (ABBV) and Sanofi (SNY). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Novartis’s shares have outperformed the Zacks Large-Cap Pharmaceuticals industry year to date (8.2% vs. 8.1%). The Zacks analyst believes that Novartis’ performance in the year so far has been stellar on key drugs like Cosentyx and Entresto, its contribution from Zolgensma, and the Xiidra acquisition.

The impending acquisition of The Medicines Company should broaden its portfolio. New launches like Piqray and Beovu should further propel performance in the upcoming quarters. A strong uptake is expected particularly from Beovu as it is the first FDA-approved anti-VEGF to offer greater fluid resolution compared to Eylea.

However, price erosion in the United States has adversely impacted the generic business. Recently, Novartis has restructured its business and spun off the eye-care unit, Alcon, to become a core drug-focused company. However, pipeline setbacks and generic competition for key drugs are concerns

(You can read the full research report on Novartis here >>>)

Shares of AbbVie have gained 22.2% in the past three months against the Zacks Large-Cap Pharmaceuticals industry’s rise of 9.3%. The Zacks analyst believes that AbbVie’s Humira is performing well driven by strong demand trends amid new competition.

Imbruvica has multibillion-dollar potential. AbbVie has been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta. It also has an impressive late-stage pipeline. It gained approvals for two new drugs with significant potential, Skyrizi (risankizumab) and Rinvoq this year. Both are off to a strong start.

The acquisition of Allergan, if successful, should diversify AbbVie’s revenue base and accelerate its non-Humira business. Sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV sales is a concern.

(You can read the full research report on AbbVie here >>>)

Sanofi's shares have gained 11.2% over the past six months against the Zacks Large Cap Pharmaceuticals industry's rise of 5%. The Zacks analyst believes that Sanofi’s focus on streamlining operations and pursuing business development deals is encouraging.

The company’s Specialty Care segment is on a strong footing, particularly with regular label expansion of Dupixent. Dupixent is now annualizing at around €2 billion in sales after just around two years in the market and could prove to be key long-term driver. The performance of the Vaccines and Consumer Healthcare franchises also improved of late.

Sanofi’s R&D pipeline is strong and has delivered important results with several positive data read-outs and the achievement of regulatory milestones this year. However, headwinds include weak performance of the Diabetes unit, generic competition for many drugs and slower-than-expected uptake of core products like Praluent.

(You can read the full research report on Sanofi here >>>)

Other noteworthy reports we are featuring today include Southern (SO), Pioneer Natural Resources (PXD) and Aqua America (WTR).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Cosentyx, Entresto, Fuel Novartis (NVS), Sandoz Weak

AbbVie's (ABBV) Pipeline Solid, Skyrizi, Rinvoq Start Strong

Sanofi (SNY) Diabetes Sales Weak, Specialty Care Unit Strong

Featured Reports

Southern Company (SO) Buoyed by Regulated Customer Growth

The Zacks analyst believes that steady increase in Southern Company's regulated business customer base should support its revenue growth.

Pioneer's (PXD) Permian Focus Offsets Rising Production Cost

Per the Zacks analyst, strong focus on the low-cost and lucrative Permian Basin is likely to help Pioneer Natural to combat the rise in production expenses.

Organic Growth & Customer Additions Aid Aqua America (WTR)

Per the Zacks analyst Aqua America is gaining from customer growth and steady investments is driving organic growth, that are assisting the company to come out with solid performance.

Guidewire (GWRE) Banks on Expanding Clientele & Partnerships

Per the Zacks analyst, Guidewire is benefiting from high demand for its cloud-based products. Further, expanding partnership programs and strategic collaborations are tailwinds.

Mobile Traffic & Premier Agent Business Aid Zillow Group (ZG)

Per the Zacks analyst, Zillow Group's growth can be attributed to its Premier Agent Business, new construction marketplaces and increasing traffic at its mobile apps as well as websites.

Regulatory Approval Delays, High Costs Hurt PG&E Corp (PCG)

Per the Zacks Analyst, any delays in acquiring regulatory approvals may impact financial performance.

Higher Sales Volumes Aid Oshkosh (OSK) Amid Input Cost Woes

Per the Zacks analyst, Oshkosh is gaining from higher sales volumes in Defense, Fire & Emergency and Commercial segments. However, rising raw material costs of steel and aluminum remains a concern.

New Upgrades

Loan Growth and Digitization Supports TCF Financial (TCF)

Per the Zacks analyst, organic growth remained a key strength at TCF Financial, as reflected by strong loans and deposit balance. Moreover, investments in technology are likely to aid further growth.

B&G Foods (BGS) Likely to Gain on Solid Pricing Initiatives

Per the Zacks analyst, B&G Foods' pricing initiatives have been a significant driver. Notably, solid pricing and cost-saving efforts are expected to help B&G Foods battle input cost inflation in 2019.

Zumiez's (ZUMZ) Sturdy Comps Performance to Propel Top-Line

Per the Zacks analyst, Zumiez's sturdy comps performance and omni-channel capabilities bode well. Comps rose 5.5% in the third quarter. Management expects fiscal 2019 comps to rise in 4-4.5% range.

New Downgrades

Surface Technologies Segment Woes to Hurt TechnipFMC (FTI)

The Zacks analyst is concerned over the weak market sentiment and unfavorable product mix in TechnipFMC's Surface Technologies unit, which is set to impact the company's near-term earnings growth.

TriMas (TRS) Weighed Down by Weak End-Markets & Higher Costs

Per the Zacks analyst, the ongoing weakness in the North American industrial and upstream oil and gas end markets will hurt TriMas' top-line while higher freight and commodity costs will dent margins.

Hawaiian Holdings (HA) Hurt by Declining Passenger Revenues

Per the Zacks analyst, competition from Southwest Airlines is affecting Hawaiian Holdings' passenger revenues. Notably, passenger revenues slipped 0.8% in the first nine months of 2019.

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Aqua America, Inc. (WTR) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
Sanofi (SNY) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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