The Motley Fool: High-Risk Pipeline Candidates and Limited Options Make Novartis an Iffy Buy Candidate

With the markets as strong as they are, it's getting harder and harder to find solid, undervalued names to add to a portfolio. While Novartis (NYSE: NVS  ) is basically in good shape, investors are already fully on board with the bullish thesis, perhaps even expecting too much from some high-risk/high-reward pipeline programs. I'm also concerned that Novartis has only limited scope or flexibility in making truly transformative moves. Worst of all, though, I believe that the Street is simply too willing to price in low risk to this name, suggesting to me that the capital appreciation potential is not all that great relative to other big pharma names.

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High-Risk Pipeline Candidates and Limited Options Make Novartis an Iffy Buy Candidate