Cantor starts Novo Nordisk with Overweight on obesity growth runway

Cantor Fitzgerald initiated coverage of Novo Nordisk (NVO) with an Overweight rating and $120 price target. The analyst sees the “runway for obesity remaining attractive for years to come.” It is already annualizing sales at over $10B, and Cantor estimates this could grow to $100B over the next 5-7 years, the analyst tells investors in a research note. It believes Novo should be an outsized beneficiary of this trend, given its leadership in what is currently a duopoly with Eli Lilly (LLY). Although there are many potential new competitors coming, Novo has much more data, established commercial infrastructure, and manufacturing capacity, making it hard for new players to catch up, contends Cantor.