Deutsche Bank cut Novo Nordisk to sell from hold on Thursday, breaking from a Wall Street consensus that had stayed reluctant to advise investors to exit the stock. Analyst Emmanuel Papadakis also lowered his price target by 9%, citing a failed drug trial and fading growth catalysts.
Deutsche Bank downgraded Novo Nordisk to sell from hold on Thursday, breaking from a Wall Street consensus that had stayed reluctant to advise investors to exit the stock despite its steep decline. Analyst Emmanuel Papadakis cut his price target by 9%, to 265 kroner, and shares fell 2% to 299 kroner in early trade.
Stock down 70% from its peak
The Ozempic maker's stock has dropped some 70% from its June 2024 peak, yet most analysts have stayed cautious rather than bearish. According to FactSet, 62% of analysts still rate the stock a hold, while three others besides Deutsche Bank carry an underweight or sell rating and 26% rate it a buy.
A pipeline setback drives the call
Papadakis pointed to a late-stage trial that missed its primary endpoint, after which the anti-inflammatory drug ziltivekimab is, according to MarketWatch: "effectively out of the picture". He added there is information uncertainty ahead of the company's Sept. 21 capital markets day.
The analyst also flagged a weaker outlook for weight-loss drug sales. An anticipated boost from Medicare covering Wegovy for cardiovascular patients now looks limited, he said. Papadakis further pointed to persisting concerns over the company's ability to return to growth in 2027, as well as a larger patent cliff problem further out.
Source: MarketWatch
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