Should You Buy the Pop in Novo Nordisk Stock?

Novo Nordisk (NVO) shares rallied more than 6% today after the Food and Drug Administration (FDA) approved Wegovy for treating metabolic dysfunction-associated steatohepatitis (MASH).

Investors are cheering NVO shares also because the pharma giant said cash-paying U.S. customers can now access its blockbuster diabetes drug, Ozempic, at a massive discount ($499 per month).

More News from Barchart

Trade the Warren Buffett Rally in UnitedHealth Stock With This High-Reward, Low-Risk Options Strategy Lyft Generates Huge FCF Margins - LYFT Stock Is Too Cheap Cathie Wood Is Buying BLSH Stock After the Bullish IPO. Should You? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.

Novo Nordisk stock has struggled this year amid intense competition in the weight-loss space with Eli Lilly (LLY). At writing, it’s down more than 40% versus its year-to-date high.www.barchart.com

What the 2 Announcements Mean for Novo Nordisk Stock

FDA’s approval for Wegovy as a treatment of MASH is meaningfully positive for NVO stock since it deepens the company’s clinical footprint beyond obesity, unlocking a new revenue stream in liver disease.

Meanwhile, offering Ozempic directly to customers via several online channels for $499 per month to cash-paying U.S. clients broadens access to its most lucrative drug, potentially boosting prescription volume and market share.

Together, these moves reinforce Novo Nordisk’s dominance in the GLP-1 market while addressing affordability concerns, strengthening commercial outlook and investor confidence in its pipeline and pricing strategy.

In short, these two catalysts could drive long-term growth, potentially unlocking significant upside in Novo Nordisk shares over time.

Should You Buy NVO Shares on the Year-to-Date Weakness?

According to TD Cowen analysts, the year-to-date decline in Novo Nordisk stock is an opportunity for long-term investors, and the firm’s GLP-1 announcements today feed right into their positive view.

The investment firm remains constructive as the NovoCare program is driving robust demand for Wegovy, and the management is committed to advancing CagriSema and cagrilintide monotherapy, addressing prior trial limitations.

Moreover, the Danish firm’s Alzheimer-focused EVOKE trial reflects strategic expansion into high impact therapeutic areas, reinforcing its innovation pipeline and long-term growth potential.

TD Cowen didn’t, however, share a price target for NVO stock that currently pays a healthy 2.2% in dividend yield.

Story Continues

Wall Street Remains Largely Bullish on Novo Nordisk

Investors should consider loading up on NVO stock at current levels also because other Wall Street firms remain largely bullish on the pharmaceutical behemoth as well.

The consensus rating on Novo Nordisk shares currently sits at “Moderate Buy” with the mean target of roughly $71 indicating potential upside of another 30% from here.www.barchart.com

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

View Comments