The Danish pharmaceutical company Novo Nordisk’s capital markets day was followed by a share price decline of nearly 8 percent, but both SB1 Markets and Ålandsbanken maintain a positive view of the pharmaceutical company. SB1 believes Novo still needs to prove that growth can accelerate, while Ålandsbanken views the share price reaction as a clear overreaction.
SB1 believes Novo Nordisk still needs to deliver in order to regain the market’s confidence after the capital markets day. However, the bank sees nothing that changes the base case and reiterates a Buy rating with a target price of DKK 370.
SB1 particularly highlights the development of oral Wegovy, which has reached 275,000 prescriptions per week, but continues to see uncertainty surrounding pricing pressure in the US and the short-term outlook. Approval of Cagrisema in the fourth quarter and study results from Redefine 11 in the first quarter of 2027 are highlighted as important upcoming catalysts.
Ålandsbanken meanwhile describes the nearly 8 percent share price decline as a clear overreaction. The bank highlights, among other things, Novo’s target of risk-adjusted pipeline sales of DKK 150 billion in 2035, compared with consensus of DKK 111 billion.
Both banks also highlight the prospects for improved cash flow. Novo expects a gross margin of around 80 percent, while investments as a share of sales are expected to decline.
In addition to the aforementioned banking duo, DNB Carnegie, Jefferies and Deutsche Bank have all lowered their target prices for Novo Nordisk, while reiterating Buy, Hold and Sell, respectively.
