Morgan Stanley analyst Thibault Boutherin maintained a Hold rating on Novo Nordisk (NVO – Research Report) today and set a price target of $99.00.
Thibault Boutherin has given his Hold rating due to a combination of factors impacting Novo Nordisk’s stock. One of the primary reasons is the competitive pressure from Eli Lilly’s Zepbound, which has surpassed Novo’s Wegovy in terms of US weekly total prescriptions and starting dose prescriptions. This competition, along with compounded semaglutide competition, is seen as a significant constraint on prescription growth for Novo’s products.
Additionally, Boutherin notes that while the long-term forecasts suggest potential upside, there are uncertainties regarding the formation of the obesity market and the peak sales potential and longevity of Novo’s franchise. These uncertainties, combined with the challenging short-term US prescription dynamics and a difficult catalyst path, have led to a cautious approach, resulting in a Hold rating. The price target has been adjusted from DKK 700 to DKK 600, reflecting these mid-term challenges and risks associated with innovation and competition.