Argus starts Novo Nordisk at Buy, sees valuation justified by growth outlook

As previously reported, Argus initiated coverage of Novo Nordisk with a Buy rating and $110 price target. The company offers a clean balance sheet and a management record of growing the dividend and buying back stock, along with its history of “impressive” growth and profitability, the analyst tells investors in a research note. Argus adds that while Novo Nordisk shares’ forward earnings multiple of 32-times trades at a premium to Big Pharma peers, the stock’s valuation is warranted given its strong track record and growth outlook.