Novo Nordisk (NYSE:NVO) has received a downgrade from Deutsche Bank, with analysts lowering their target price as midterm growth concerns and pipeline issues mount.
The shares dropped 2.52% to DKK 297.25 as the broker adjusted its rating to 'sell', moving down from a previous 'hold' view following the drugmaker's mixed second-quarter update.
At the centre of the revision is a 9% reduction in the target price from DKK 290 to DKK 265, matching mid-term revenue cuts delivered in the update.
That cautious stance stems from a limited Medicare prescription bump and the removal of ziltivekimab from the immediate earnings outlook after earlier trial outcomes.
Those headwinds feed into broader worries regarding the scope for a return to growth in 2027 and a large revenue cliff problem extending further into the decade.
In the same report, the bank noted that information uncertainty remains elevated, based on an evaluation of recent prescription trends and feedback from sell-side meetings in London and Frankfurt.
This adjustment follows an earlier rating cut to hold in February after previous earnings misses.
On the horizon is an upcoming capital markets day scheduled for 21 September, which offers management a platform to address these ongoing strategic questions.
