Analyst Sachin Jain of Bank of America Securities maintained a Hold rating on Novo Nordisk, with a price target of DKK375.00.
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Sachin Jain’s rating is based on several factors impacting Novo Nordisk’s current and future performance. The company has announced a significant restructuring plan aimed at achieving cost savings, but the net benefits remain unclear as these savings are expected to be reinvested into diabetes and obesity sectors. This has led to a downward revision of the EBIT guidance, which raises concerns about the company’s ability to meet its sales targets, particularly given the current lackluster trajectory of key products like Wegovy and Ozempic.
Additionally, there are risks associated with potential sales guide cuts and the implications for future fiscal years. The market’s perception of Novo Nordisk as a premium growth company is diminishing, with increasing debates about its trading multiples as it approaches a patent cliff in FY31. The company’s growth outlook is further challenged by competitive pressures and uncertainties in the regulatory environment, which contribute to the Hold rating as investors remain cautious about the company’s ability to navigate these challenges effectively.
Jain covers the Healthcare sector, focusing on stocks such as Novo Nordisk, Sanofi, and AstraZeneca. According to TipRanks, Jain has an average return of 1.6% and a 54.68% success rate on recommended stocks.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a DKK340.00 price target.