Novo Nordisk Reassessed After Sharp Selloff as Analysts Flag Value and Strategy Shift

Overview

• Shares are about a third of their June 2024 highs after a year of slower growth in obesity treatments and tougher competition.
• Management cut profit forecasts following restructuring tied to softer sales.
• The business remains profitable with substantial cash and a resilient pipeline, according to recent coverage.
• Novo Nordisk walked away from a proposed Metsera acquisition, reflecting a preference for disciplined capital allocation and potential shareholder returns.
• Valuation screens at under 13x earnings with an estimated 3.8% dividend yield, and commentary cites a recent U.S. government agreement on tariffs and a reiterated Bernstein target of DKK540.