BMO Capital analyst Evan Seigerman maintained a Hold rating on Novo Nordisk today and set a price target of $55.00.
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Evan Seigerman has given his Hold rating due to a combination of factors impacting Novo Nordisk’s performance. The company is facing manageable yet notable challenges from the IRA pricing negotiations and patent expirations, which are expected to slightly drag on global sales. These factors, while not catastrophic on their own, contribute to a less optimistic outlook when combined with the recent top and bottom line misses and the underperformance of Wegovy, despite Ozempic’s positive results.
Furthermore, the competitive landscape for Novo Nordisk’s GLP-1 portfolio is intensifying, with rivals like Lilly’s Mounjaro and Zepbound gaining market share. The anticipated entry of new competitors, such as orforglipron, adds additional pressure. These dynamics, along with the lowered revenue and operating profit guidance, suggest that Novo Nordisk’s shares may struggle to outperform in the cardiometabolic market, justifying the Hold rating.