Bank of America Securities analyst Sachin Jain maintained a Hold rating on Novo Nordisk yesterday and set a price target of DKK375.00.
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Sachin Jain’s rating is based on a combination of factors affecting Novo Nordisk’s current and future performance. The recent pre-announced second-quarter results revealed a profit warning, highlighting challenges such as a weaker performance in China due to destocking and variability in product stocking dynamics. Additionally, the company is facing legal challenges related to misleading practices concerning semaglutide compounders, adding uncertainty to its future prospects.
Furthermore, while there were some positive developments, such as a better-than-expected foreign exchange impact and pipeline updates, these were not enough to offset concerns. The growth outlook for key products like Ozempic and Wegovy remains a topic of debate, especially with competitive pressures and patent expiration risks on the horizon. Consequently, Sachin Jain has maintained a Hold rating, reflecting a cautious stance on the company’s growth trajectory and valuation concerns.
In another report released on August 5, UBS also downgraded the stock to a Hold with a DKK340.00 price target.
0QIU’s price has also changed dramatically for the past six months – from DKK626.369 to DKK295.747, which is a -52.78% drop .