Roche's sustained growth visibility, Novartis' execution risks - RBC initiates coverage

Roche Holding AG

09/09/2026 08:32

**RBC initiates Roche ROPC.S at "outperform" and Novartis NOVN.S at "sector perform", seeing sustained growth visibility at the former but clinical execution risk at the latter
** Roche has further re-rating potential despite a near all-time high valuation, with base business gaining momentum and pipeline offering deeper potential than the street models, RBC says
** Roche's experimental breast cancer drug giredestrant is "hugely underappreciated", RBC adds; forecasts about $14 bln peak sales versus consensus of $9.3 bln
** At Novartis, setbacks for pelacarsen, a heart-disease drug, and del-desiran, a treatment for a rare muscle disorder, have dampened momentum and raise the pipeline bar, RBC says, adding post-2026 pipeline is expansive but unproven
** Broker says Novartis needs near-flawless pipeline execution or business development to achieve its 5%-6% sales CAGR guidance, given about $13 bln in loss of exclusivity drag by 2030 
     

(Reporting by Basile Day)
((Basile.Day@thomsonreuters.com))