Novo Nordisk (NVO – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Evan Seigerman from BMO Capital maintained a Hold rating on the stock and has a $64.00 price target.
Evan Seigerman has given his Hold rating due to a combination of factors impacting Novo Nordisk’s competitive positioning in the cardiometabolic market. Despite the positive move of partnering with Hims & Hers to expand their direct-to-consumer (DTC) offerings for Wegovy, there are broader challenges that Novo faces in maintaining its market share.
Seigerman notes that while the partnership could help Novo capture some lost share from compounded products, the competitive pressure from Lilly’s products, such as Mounjaro and Zepbound, remains significant. Additionally, the upcoming data on orforglipron presents another potential challenge. Furthermore, the anticipated catalysts in 2025 are not expected to be strong enough to significantly enhance Novo’s market position. These factors collectively contribute to the Hold rating, as Novo’s shares are expected to remain less competitive compared to its peers.
NVO’s price has also changed dramatically for the past six months – from $111.980 to $65.160, which is a -41.81% drop .