JP Morgan has lowered its price target for Novo Nordisk (NYSE:NVO) to DKr1,000 from DKr1,050, citing a delay in the launch of CagriSema, the company’s next-generation obesity treatment.
The drug, originally expected in 2026, is now projected to hit the market in early 2027, prompting a 2-3% reduction in sales and operating profit forecasts for 2027-2030.
Despite the setback, JP Morgan remains upbeat on Novo’s near-term outlook, forecasting 22% sales growth and 23% operating profit growth in 2025 at constant exchange rates.
The firm sees strong momentum in prescriptions for obesity and diabetes drugs, particularly Wegovy and Ozempic, as Novo ramps up supply in the U.S. and international markets.
UBS noted that Novo’s fourth-quarter results exceeded expectations, with sales 5% above consensus and operating profit 9% ahead, boosted by one-off adjustments in its insulin business.
The firm highlighted that guidance for 2025 sales growth of 16-24% was slightly stronger than expected while operating profit is expected to rise 19-27%.
Investor focus remains on CagriSema’s upcoming trial results, with Phase III data in obese Type 2 diabetes patients due in the first quarter of 2025.
UBS expects more clarity on the drug’s weight-loss potential later this year, particularly in a head-to-head trial against Eli Lilly’s tirzepatide, scheduled for late 2025.