Despite a double beat in its quarterly earnings on May 7, Novo Nordisk A/S NYSE: NVO stock is still down nearly 50% in 2025. However, the stock is now trading near its 52-week low and is a discount to itself in several metrics.
Novo Nordisk's stock has declined 55% from its all-time high, but the company continues to report strong quarterly results with significant revenue and profit growth. Despite slowing growth rates and revised guidance, NVO's rich pipeline and strategic acquisitions position it for sustained high growth, particularly in diabetes, GLP-1, and obesity care. The company's current product portfolio is well-protected by patents until at least 2030, ensuring stable revenue from key products like Wegovy and Ozempic.
Septerna (NASDAQ:SEPN) shares surged almost 50% after the announcement of an exclusive global collaboration and license deal with Novo Nordisk (NYSE:NVO) to develop oral small molecule medicines targeting obesity and other cardiometabolic diseases. The partnership brings together Septerna's expertise in G protein-coupled receptor (GPCR) drug discovery with Nono Nordisk's established obesity and metabolic disease therapies, which include the injectables Wegovy and Ozempic.
Novo Nordisk has a strong economic moat based on significant market shares in diabetes and obesity care, and promising pipeline drugs, though facing competition and political pressures. The company shows very high profitability and about 20% EPS and dividend growth. My Fair Value estimate, derived from three distinct sources, is $83, suggesting about 27% potential upside.
Private investors considering Novo Nordisk (NYSE:NVO) should approach with measured optimism. The Danish drugmaker is a global leader in the fast-growing obesity market, but Morgan Stanley believes the near-term outlook is mixed.
Eli Lilly and Co (NYSE:LLY)'s weight loss drug Zepbound (tirzepatide) has shown superior results compared to Novo Nordisk (NYSE:NVO)'s Wegovy (semaglutide) in a direct clinical trial, marking the first head-to-head comparison between the two leading obesity treatments. In the 72-week SURMOUNT-5 trial, participants on Zepbound lost an average of about 50 pounds (22.8 kg), equating to approximately 20.2% of their body weight.
Shares of the Ozempic-maker fell while the rest of the market rose,as it's facing a hit to revenue from different directions.
Despite Novo Nordisk's stock decline, the company's competitive position is strengthening, driven by strong sales growth in Wegovy, Ozempic, and rare diseases. Eli Lilly's oral weight-loss drug announcement caused undue panic; NVO's advanced pipeline, including oral semaglutide and Amycretin, remains highly competitive. The partnership with Hims & Hers mitigates legal risks and boosts distribution, promising significant synergies and long-term benefits for the Company.
Novo Nordisk's stock has plummeted over 60%, while also arguably losing market share to Eli Lilly. Despite setbacks, Novo is actively enhancing market access for Wegovy and partnering with CVS and telehealth platforms to regain momentum. NVO's valuation is at a multi-year low, pointing to a plausible recovery if it manages to improve its execution and stem further losses.
Novo Nordisk (NVO) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Novo Nordisk (NVO) have what it takes?
The consensus price target hints at a 51.2% upside potential for Novo Nordisk (NVO). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.