Novo receives a buy recommendation from SB1
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today at 12:06 ∙ MarketWire
Analysis of Novo Nordisk’s stock began on Tuesday with a buy recommendation from the financial firm SB1 Markets.
This is evident from SB1’s memo, which estimates that Novo’s shares are trading at a 20–25 percent discount compared to peer companies, while compared to Eli Lilly, the discount is 50–60 percent based on enterprise value relative to operating profit.
“* We consider this discount excessive. The main driver going forward is the launch of oral Wegovy, which is expected to restore both sales and earnings growth starting from 2027,” writes SB1.
The market expects sales to decrease by 11 percent in 2026, after which they will grow by 5 percent in 2027 and 10 percent in 2028. According to SB1, sales of Wegovy in pill form are expected to rise to 42.6 billion Danish kroner in 2028, which is significantly higher than market expectations.
Analyst Johan Unnerus has set a price target of 280 Danish kroner for Novo.
Novo’s share price rose 3.7 percent to 255.30 Danish kroner on Wednesday. This is nearly 10 percent below SB1’s price target.
Of the 37 analysts reporting their recommendations and price targets to Bloomberg News, ten are positive, 24 are neutral, and three are negative.
The average price target is also 302 Danish kroner, suggesting an upside potential of nearly 23 percent.