Cautious Hold Rating on Novo Nordisk Amid Competitive Pressures and Uncertain Growth Prospects

Analyst Evan Seigerman of BMO Capital reiterated a Hold rating on Novo Nordisk, boosting the price target to $55.00.

Evan Seigerman has given his Hold rating due to a combination of factors affecting Novo Nordisk’s market position and future prospects. The company’s recent performance, particularly in the diabetes and obesity sectors, shows mixed results. While there is some growth in Wegovy’s prescriptions, this is largely attributed to a CVS Caremark exclusive deal rather than inherent product strength. Additionally, Ozempic faces challenges with declining script numbers, and the competitive landscape remains tough with Lilly’s Mounjaro and Zepbound gaining market share.
Seigerman also notes that while Novo Nordisk’s revenue and earnings estimates slightly exceed consensus, these are not sufficient to significantly alter the company’s competitive stance. The potential for new competitors, such as orforglipron, and the lack of strong catalysts in 2025 further contribute to the Hold rating. The analyst is also cautious about the impact of restructuring and ongoing operational issues, which could affect future performance. Overall, the Hold rating reflects a cautious outlook amid competitive pressures and uncertain growth prospects.