Novo Nordisk downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Novo Nordisk (NVO) to Market Perform from Outperform with a price target of $64, down from $105. The company’s obesity competitor Eli Lilly (LLY) has made sizable advancements in its commercial and clinical portfolio, causing it to overtake Novo’s early lead, the analyst tells investors in a research note. The firm says updates from Lilly’s oral GLP1, orforglipron, are likely to pressure Novo shares, which will only be compounded by what it expects to be “softer” Q1 results. BMO is moving to the sidelines until Novo can demonstrate clinical and commercial “prowess.”