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Investor Insights

This summary was created by AI, based on 40 opinions in the last 12 months.

Novo-Nordisk is facing challenges in the competitive landscape of obesity and diabetes drugs, particularly against Eli Lilly, which is gaining market share. Experts indicate that while NVO's stock has declined significantly, with a current valuation around 19x to 22x forward PE and expected growth rates of 14-25%, the company remains a leader in weight-loss treatments. The company benefits from strong brand recognition and ongoing demand for its obesity drugs like Ozempic and Wegovy. However, analysts express concerns about the heavy reliance on a few major drugs and the potential impact of increasing competition in the weight-loss sector. Overall, while there is a belief in long-term growth prospects due to rising obesity rates, current market conditions and short-term volatility present caution for investors considering new positions.

Consensus
Hold
Valuation
Fair Value
PAST TOP PICK
(A Top Pick Apr 10/24, Down 51%)

Overvalued to start with, and expectations were high. Small miss on weight loss percentage led to huge drop in stock price. LLY is grabbing more market share. Worry that drugs in US will face tariffs. Buy here, do well in the long run.

BUY ON WEAKNESS

He prefers Eli Lilly, but shares of NVO have come down enough.

PAST TOP PICK
(A Top Pick Mar 06/24, Down 51%)

He's out. Valuation has now become fairly attractive at 16x forward PE for 14-15% growth. Below 200-week MA, troubling. Long term, a name to look at again once things turn around. Losing some market share to LLY.

DON'T BUY

Now a whole slew of competitors in the weight-loss space. He'd prefer a more diversified pharma company.

BUY ON WEAKNESS

Is -17% this year and -42% the past year. It went too far too fast. He's been buying more on the way down, because obesity won't change, so their weight-loss drug will keep selling. Tariffs: NVO has facilities in the US already. 60% of revenues are outside North America (vs. Eli Lilly's 60% within US). To extend patent protection, a pharma company just needs to change its formula every 3 years to extend the patent protection. There will be competition, but NVO has brand recognition and scale.

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Its stock decline is not unique in this market: most growth companies have been hit very very hard, in one of the sharpest sell-offs we have seen in some time. NVO is 19X earnings now, with a 2.90% dividend. The balance sheet is fine and good growth is still expected over the next two years. We would be comfortable owning this and riding out the current market malaise, which will end one of these days (weeks, or months).
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PAST TOP PICK
(A Top Pick Mar 26/24, Down 41%)

Sentiment's pretty rough on this name. Fairly cheap at 22x forward PE, 18% earnings growth. Regulatory scrutiny. Lost a bit of market share to LLY (which he still holds). Below 200-day MA, which is moving down. Growth of GLP-1 drugs is there, so he's keeping an eye on it for future.

DON'T BUY

So many companies now with competing weight-loss products. Riding the hype on this one drug, and he'd much prefer more diversification.

BUY

Has owned this a long time, but has trimmed recently. Unfortunately, diabetes is a growing business. Stocks have fallen recently, because supply couldn't meet demand, but the price is attractive and reasonable.

TOP PICK

It is the largest player in obesity drugs which includes Ozempic. A large percentage of the population in North America are overweight and this condition causes chronic diseases. Therefore obesity drugs help to bring down costs to treat these chronic diseases. The stock price  has fallen because of an over-reaction to an announcement. It is a great franchise and has other businesses. The NOVO foundation owns the majority of shares and can't be taken over.         Buy 7  Hold 4  Sell 1

(Analysts’ price target is $110.23)
SELL

Removed from his portfolio not long ago on a stop loss. Long term, secular growth of anti-obesity drugs is still strong. Short-term, cyclical challenges. Quite leveraged to anti-obesity and diabetes, but LLY is more diversified.

Once negative sentiment dissipates, could see him getting back in. About 20-25% earnings growth, trading at 22x, so PEG is just under 1. Value is there, but sentiment not in its favour right now.

PARTIAL BUY

It reports Wednesday. Eli Lilly has already announced soft Q4 sales, but expects a good 2025, so how is NVO doing? Maybe buy some shares before the report.

HOLD

There is a lot going on with the class of drug involving diabetes and weight loss. The potential of PLP1 drugs is huge and could become a $100 billion market so there is lots of competition.The efficacy of the new class is superior and they are very excited over some positive results. He doesn't own NVO but loves the space and instead of adding to NVO as the caller was wondering about, he would buy Eli Lilly as a complement to it in that space. Their new drug is much the same as Ozempic but is in an oral form rather than injection. This could be a game changer with 60 different ongoing trials. Eli Lilly is the first to get it approved for obesity and phase three results will be coming out of Japan. Diversity is essential.

BUY
Investor is down 26%.

Challenging 6 months. Price action is one thing, but if you drill down and look at the business, everything is going quite well. Recent manufacturer acquisition solidifies supply and shipping. US patent concerns, but to open that would open a Pandora's box on all patents, including domestic ones.

Very bright future. Opportunity to add.

SELL
NVO vs. LLY

Exited NVO based on stop losses. Market had high expectations, and efficacy numbers came in weaker than anticipated, sold off. A great name, but he's out for the moment. LLY is outperforming NVO at this point. NVO is a bit more leveraged to the weight-loss-management drugs, whereas LLY is more diversified.

LLY has strong technical indicators, with 200-week and 200-day MAs moving higher. Still shows strength within his quant screens. Trading at 35x forward PE, with 28-29% growth rate -- pretty impressive; PEG ratio rather low. Dropped below 200-day MA, but that might be temporary. Both names have beta, but likes them long term.

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Novo-Nordisk(NVO-N) Rating

Ranking : 5 out of 5

Star iconStar iconStar iconStar iconStar icon

Bullish - Buy Signals / Votes : 20

Neutral - Hold Signals / Votes : 4

Bearish - Sell Signals / Votes : 11

Total Signals / Votes : 35

Stockchase rating for Novo-Nordisk is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Novo-Nordisk(NVO-N) Frequently Asked Questions

What is Novo-Nordisk stock symbol?

Novo-Nordisk is a American stock, trading under the symbol NVO-N on the New York Stock Exchange (NVO). It is usually referred to as NYSE:NVO or NVO-N

Is Novo-Nordisk a buy or a sell?

In the last year, 35 stock analysts published opinions about NVO-N. 20 analysts recommended to BUY the stock. 11 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Novo-Nordisk.

Is Novo-Nordisk a good investment or a top pick?

Novo-Nordisk was recommended as a Top Pick by on . Read the latest stock experts ratings for Novo-Nordisk.

Why is Novo-Nordisk stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Novo-Nordisk worth watching?

35 stock analysts on Stockchase covered Novo-Nordisk In the last year. It is a trending stock that is worth watching.

What is Novo-Nordisk stock price?

On 2025-04-25, Novo-Nordisk (NVO-N) stock closed at a price of $62.08.