Goldman Sachs Maintains Buy Rating on Novo Nordisk with DKK400 Price Target

Goldman Sachs maintains a Buy rating on Novo Nordisk with a price target of DKK400. The analyst consensus is Moderate Buy with a price target consensus of DKK536.67, a 76.73% upside from current levels. Based on corporate insider activity, sentiment is negative with an increase in insiders selling their shares. Novo Nordisk has a market cap of DKK1370.8B and a P/E ratio of 12.93.

Goldman Sachs has revised its target price for Novo Nordisk, lowering it from 745 Danish kroner to 400, while maintaining a buy recommendation. The investment bank sees an upside risk for the drugmaker, but notes that this potential could take time to materialize [1].

Novo Nordisk's stock has been volatile, with shares rising by 3% to 317.95 Danish kroner on Monday following a sharp decline last week. The company faces intense competition in the U.S. weight loss market, particularly from compounded versions of its flagship drug Wegovy and Eli Lilly's Ozempic [2]. This competition has led to a significant drop in Novo Nordisk's market capitalization, which has fallen to $170 billion from its peak of $650 billion [2].

Noom, an online weight-loss company, has introduced microdose copies of Wegovy at a starting price of $119, aiming to make the drug more accessible. This move comes amidst a lawsuit against Novo Nordisk by investors claiming the company misled them with optimistic growth forecasts and minimized competition risks in the obesity market [3]. Noom's new offering provides a quarter dose of semaglutide, the generic name for Wegovy, at a lower price point, which could attract patients seeking a more affordable option [3].

Despite the challenges, Novo Nordisk's new CEO Maziar Mike Doustdar remains optimistic about the market opportunity and the company's pipeline. However, he acknowledges that the stock may remain cheap due to existing challenges, and investors are likely to remain cautious until the company demonstrates concrete progress in addressing these issues [2].

The analyst consensus is Moderate Buy with a price target consensus of DKK536.67, a 76.73% upside from current levels. Based on corporate insider activity, sentiment is negative with an increase in insiders selling their shares [1]. Novo Nordisk has a market cap of DKK1370.8B and a P/E ratio of 12.93 [1].

References:
[1] https://www.marketscreener.com/news/goldman-sachs-sees-upside-risk-in-novo-nordisk-may-take-time-to-materialize-ce7c5edada8cf520
[2] https://www.ainvest.com/news/novo-nordisk-faces-intensifying-competition-shares-fall-170-billion-market-capitalization-2508/
[3] https://www.ainvest.com/news/novo-nordisk-wegovy-noom-119-microdose-form-2508/