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April 8, 2011
COMPANY OVERVIEW BUY
Forecasted Upper Limit $ 87.52 NOVARTIS AG
Best Estimate $ 73.55
Forecasted Lower Limit $ 61.80 NVS
Last Price $ 55.60
Rating Move: Reiterated
Ativo Research’s Investment Conclusion
Ativo Research projects as of this date that NVS will OUTPERFORM the market averages over the next 6 to 12
Prior Change: Upgrade to Buy 02/25/11
months leading to our decision of a BUY. Our decision is based on (1) valuation, which compares the firm’s intrinsic Sector: Pharmaceuticals
value against the price of its stock, (2) intermediate and long-term price momentum, (3) other measures of
fundamental trend and (4) qualitative analysis. Asset Class: Large Cap
Region: Switzerland
The bar chart to the left shows the range of the score
in the last three years. The red stripe indicates the
60 60 current/latest value and the dark blue bars bracketing
the stripe indicate the maximum and minimum values
of the score in the three years.
40 40
20 20
0 0
A M J J A S O N D J F M Three Year
Range
0 20 40 60 80 100
0 0
Fundamental Trend:
Three Year
Earnings Surprise
A M J J A S O N D J F M Range The earnings surprise component compares the
average of earnings surprises relative to forecasts for
the past two quarters.
Fundamental Trend Score - History Sales growth
This component is based on the percentage change
Average over the last two quarters of trailing four-quarter
100 100 sales per share.
Return on Investment (ROI)
Trend
80 80 This indicator measures the degree to which the
firm is improving its real economic performance
relative to the corporate sector as a whole. The
60 60 calculation evaluates the forecasted trend in ROI
over the next five fiscal years and then compares
that trend with actual performance over the past
three fiscal years.
40 40 Return Since Last Turning Point
This indicator recognizes that different firms can do
better or worse in different types of markets.
20 20 Performance is measured since the last market
turning point, which is identified by Ativo's ongoing
review as representing a fundamental change in the
character of market conditions. These turning points
0 0 typically unfold once or twice a year, often around
quarter-end dates. For a look at the most recent
A M J J A S O N D J F M Three Year
turning point, see page 3.
Range
SNY 73
ABT 69
0 20 40 60 80 100
-5%
MRK
-10%
-15%
-10% -5% 0% 5% 10% 15%
1 Year Return
as of the date that it was published and the opinions, estimates, ratings and other information may change
without notice or publication. Past performance is no guarantee of future results. Prior to making an
investment or other financial decision, please consult with your financial, legal and tax advisors. Ativo
shall not be liable for any party’s use of this report.
Ativo is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security
referred to herein. Ativo has not sought, nor does it intend to seek investment banking revenues from any
company discussed or referred to in this report. During the past 12 months, Ativo has not received
compensation from any company discussed or referred to in this report. An affiliate of Ativo may buy or
sell the securities referred to herein.
COPYRIGHT © 2010 Ativo Research, LLC. – Unauthorized duplication and distribution of this report is
strictly prohibited.