BMO Capital reiterates Market Perform rating on Novo Nordisk stock

Investing.com - BMO Capital has reiterated its Market Perform rating and $50.00 price target on Novo Nordisk (NYSE:NVO), which currently trades at $48.26, near its 52-week low of $45.05 after falling over 42% year-to-date.

The firm’s decision follows Novo Nordisk’s extraordinary general meeting, which BMO Capital noted proceeded largely as expected after the company’s analyst call in late October. Despite recent challenges, InvestingPro data shows Novo maintains a "GREAT" overall financial health score.

Newly appointed board chair Lars Rebien Sørensen, who also chairs the Novo Nordisk Foundation, outlined his vision to help get Novo shares back on track following what has been described as a challenging year for the company.

The changes to the Novo board passed with more than 93% of the votes cast in favor during the meeting.

BMO Capital highlighted that Sørensen reiterated his full support for recently appointed CEO Mike Doustdar during the proceedings.

In other recent news, Novo Nordisk has begun selling its weight-loss drug Wegovy for $349 a month, implementing the price cut ahead of schedule. The company also announced that most doses of its diabetes drug Ozempic would be available at the same price, except for the highest 2 mg dose, which will remain at $499. Novo Nordisk’s CEO, Mike Doustdar, mentioned that the agreement with the White House aims to broaden access to Wegovy through the U.S. Medicare program. In another development, Novo Nordisk has denied having a partnership with Mangoceuticals, which had claimed special arrangements with the company regarding weight-loss drugs. This denial contributed to a significant stock drop for Mangoceuticals . Additionally, Novo Nordisk has withdrawn from a bidding war with Pfizer for Metsera, a U.S. weight-loss drug developer, after Pfizer matched its latest offer. The decision was influenced by communication from the U.S. Federal Trade Commission regarding potential regulatory issues. BMO Capital has subsequently lowered its price target for Novo Nordisk from $55 to $50, citing the company’s recent aggressive bid for Metsera.

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