Novo Nordisk (NVO), the company behind popular diabetes and obesity treatments Ozempic and Wegovy, saw its stock rise on Thursday after long-time skeptic Kepler Cheuvreux finally upgraded its rating to Buy. In fact, the Paris-based financial services firm has been covering Novo Nordisk for nine years and has maintained a Hold rating throughout the whole time.
Kepler Cheuvreux’s decision can be attributed to Novo Nordisk’s (NVO) significant stock drop of over 44% in the past year. Analyst David Evans believes that shares have reached a good entry point and set a 12-month target price of 630 Danish Kroner ($91.72) per share. This price target implies an upside potential of almost 20% from current levels.
It is worth noting that Novo Nordisk’s stock had been under pressure due to concerns about its high valuation and disappointing trial results for its new weight loss treatment, CagriSema. However, Kepler Cheuvreux now thinks the market has become too pessimistic about the company’s outlook. And with popular products like Ozempic and Wegovy that are expected to continue growing revenue, Novo Nordisk (NVO) may be well-positioned for a comeback.
Is NVO Stock a Good Buy?
Overall, analysts have a Moderate Buy consensus rating on NVO stock based on five Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVO price target of $109.29 per share implies 38.7% upside potential.
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