Danish drugmaker Novo Nordisk is facing a major challenge to its blockbuster weight-loss drug Wegovy.
The drugmaker is slated to report its second-quarter financial results early Wednesday.
UBS has lowered its rating on Novo Nordisk (NYSE:NVO) from 'buy' to 'neutral', slashing the price target to DKK340 from DKK600. The downgrade comes after what UBS described as “challenging times” for the Danish pharmaceutical group, citing a sharp slowdown in growth for its flagship GLP-1 medicines, intensifying competition from Eli Lilly, and persistent pricing pressures.
Novo Nordisk A/V NYSE: NVO stock is testing the patience of buy-and-hold investors. Over the last five years, NVO stock is up more than 200%.
Novo Nordisk's (NVO) U.S.-listed shares were up about 2% in recent trading after shedding about a third of their value last week, when the company cut its full-year outlook and named a new CEO, leading Wall Street analysts to downgrade the stock.
NVO's second-quarter revenues are expected to have been driven by its sales of diabetes and obesity care products, Wegovy, Ozempic and Rybelsus.
I'm downgrading Novo Nordisk from Strong Buy to Buy due to recent guidance cuts, competitive pressures, and persistent compounded GLP-1 drug erosion. The long-term obesity drug opportunity, Novo's manufacturing scale, and a strong pipeline still support a bullish multi-year thesis. Novo is attractively valued after the sell-off, but near-term recovery requires patience; it's a Buy for long-term investors comfortable with volatility.
In the closing of the recent trading day, Novo Nordisk (NVO) stood at $47, denoting a -6.06% move from the preceding trading day.
Novo Nordisk's 20%+ price drop since yesterday following a significant downgrade in sales and profit guidance is a great buying opportunity. The stock's forward P/E is at half the stock's five-year average, and with growth catalysts in place, fundamentals could improve too. The launch of NovoCare is showing signs of boosting Wegovy's sales, and the E.U.-U.S. trade deal adds stability for the new CEO.
Novo Nordisk stock plunges 22% after slashing 2025 sales and profit outlooks, citing weak GLP-1 drugs' uptake and rising competition.
Shares in Novo Nordisk (NYSE:NVO) are under the spotlight after a surprise profit warning, which, while denting the share price, failed to the wreak the damage some might have feared. That said, the 3.6% fall in the stock piles on the pain for the Ozempic maker, which was formerly Europe's most valuable company.
Novo Nordisk's stock has dropped over 20%, but its core business remains strong and diversified, making this an attractive entry point for investors. Despite increased GLP-1 competition and lowered guidance, Novo Nordisk continues to grow, expand its market share, and generate robust cash flow. The company's rare disease and oral semaglutide segments are showing promising growth, with a strong R&D pipeline supporting future expansion.