Skip to content
Business — Stock — Somewhat — Obesity — Recommends — Investing — Science — Nordisk — Health-and-wellness — Medical-conditions — Finance

Amidst price drops, Novo Nordisk's stock still offers a substantial 60% return.

Pharmaceutical giant Novo Nordisk once shone brightly, but now struggles to rebuild investor confidence after a stock slide. A recovery of around 10% is possible, given the right circumstances.

,   and  Administrator
3 min read
Pharmaceutical giant Novo Nordisk was hailed as a standout in the industry last year. Yet,...
Pharmaceutical giant Novo Nordisk was hailed as a standout in the industry last year. Yet, currently, the company faces the challenge of restoring investor confidence and striving for double-digit growth.

Amidst price drops, Novo Nordisk's stock still offers a substantial 60% return.

Rewritten Article:

From Pharma Star to Tailspin, Can Novo Nordisk Rebound?

Just a year ago, Novo Nordisk was riding high, ruling the roost in the pharmaceutical industry. Now, it's fighting tooth and nail to regain investor confidence and shoot for that double-digit comeback. But it might just happen.

Lately, Novo Nordisk has been the hottest stock in town, all thanks to the buzz around weight loss medication like Wegovy. However, that buzz seems to have faded, leaving trails of disappointment after dismal study results for new weight loss drugs like CagriSema. On Monday, the stock plummeted to a new 52-week low of 462.90 Danish Krone, relinquishing its title as the most valuable company. Should you sell off your shares now?

UBS Backs Novo Nordisk, Setting a 750 DKK Price Target

Contrary to popular sentiment, optimism about the stock hasn't subsided. Swiss banking giant UBS recently reaffirmed its buy recommendation for Novo Nordisk, setting a price target of 750 Danish Krone. If achieved, this would imply a potential upside of around 60% in the medium term.

UBS analyst Jo Walton pins her hopes on ongoing prescription trends in the U.S. for the GLP-1 drug, which helps curb appetite.

Novo Nordisk is More Than Just Wegovy

Investors seem to be caught up in the weight loss hype. While it's a significant driver, Novo Nordisk has a lot more brewing in its pipeline. The spotlight is currently on the full late-stage results of the SOUL study, which suggest that oral semaglutid (the active ingredient in Wegovy) Rybelus significantly reduces the risk of serious cardiovascular events in adults with type 2 diabetes.

Novo Nordisk continues to focus on diabetes and obesity treatments, but investors might be underestimating the potential of related research fields. The current devaluation of Novo Nordisk seems somewhat exaggerated. A comeback is definitely a possibility in the near future.

Contains material from dpa-AFX

Also read: Telekom Dividend: The Ultimate Guide to Permanently Tax-Free Payments

Or: Judgment Day: Why the Stock Market Might Collapse Completely on Wednesday

Conflict of interest notice:The majority shareholder and management of the publisher Börsenmedien AG, Mr. Bernd Förtsch, holds direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the price development resulting from the publication.

Insights:- Recent Performance and Challenges: Novo Nordisk’s stock price has experienced a significant fall this year, dropping approximately 71% from $432.38 at the start of 2024 to around $126.72 as of early May 2025[2]. However, its Q1 2025 financial results showed robust growth with a 19% increase in sales, 20% rise in operating income, and a 14% rise in net profit[2].- Analyst and Market Sentiments: UBS has upgraded Novo Nordisk stock to a "buy" rating, and the company is forecasted to earn $3.89 per share for fiscal 2025, an 18.6% year-over-year increase[1]. Morningstar increased its fair value estimate for Novo Nordisk shares from DKK 600 to DKK 640, suggesting the stock is undervalued at current prices and trading at a roughly 30% discount to fair value[3].- Stock Price Forecasts: Price prediction models suggest Novo Nordisk’s stock could rise to around $70 by the end of 2025 and continue increasing to $85 by the end of 2026, with further gains expected through 2030, potentially reaching above $420[4][5].- Key Factors Supporting Recovery: Strong underlying sales and profit growth, strategic leadership in the GLP-1 market, positive analyst upgrades, and fair value revisions, and forecast models predicting steady price recovery with double-digit percentage growth over the next several years[1][3][4][5].

  1. Despite experiencing a significant fall, Novo Nordisk's stock has shown robust growth in its Q1 2025 financial results with a 19% increase in sales.
  2. UBS analyst Jo Walton remains optimistic about Novo Nordisk's stock, setting a price target of 750 Danish Krone, implying a potential upside of around 60% in the medium term.
  3. Novo Nordisk is not just focused on weight loss medication; its pipeline includes the full late-stage results of the SOUL study suggesting that oral semaglutid (the active ingredient in Wegovy) Rybelus significantly reduces the risk of serious cardiovascular events in adults with type 2 diabetes.
  4. The current devaluation of Novo Nordisk seems somewhat exaggerated, given the untapped potential of related research fields.
  5. Research suggests that Novo Nordisk’s stock could rise to around $70 by the end of 2025 and continue increasing to $85 by the end of 2026, with further gains expected through 2030.
  6. The company's strong underlying sales and profit growth, strategic leadership in the GLP-1 market, positive analyst upgrades, and fair value revisions are key factors supporting its potential rebound in the near future.

Read also:

    Related

    Latest