Bernstein starts Novo with Underperform on weight loss concerns

As previously reported, Bernstein initiated coverage of Novo Nordisk (NVO) with an Underperform rating and $175 price target Novo’s earnings downgrade cycle is not over, the analyst tells investors in a research note. The firm believes the company’s catalyst path “looks bare.” Bernstein says Novo’s weight loss drugs will underperform in the U.S. on lower volume share and more price deflation. In addition, the U.S. semaglutide compound patent expiration in 2032 will drive greater mix deterioration and margin contraction, contends the firm.