BNP Paribas Exane upgrades Novo Nordisk stock to Neutral from Underperform

Published 13/08/2025, 08:58
BNP Paribas Exane upgrades Novo Nordisk stock to Neutral from Underperform

Investing.com - BNP Paribas (OTC:BNPQY) Exane upgraded Novo Nordisk (NYSE:NVO) (NOVOB:DC) from Underperform to Neutral on Wednesday, while lowering its price target to DKK345.00 from DKK405.00.

The research firm updated its forecasts to better reflect current and future prescription, foreign exchange, and pricing trends, resulting in 2025-30 sales and earnings per share estimates that are 1-9% and 2-17% below consensus, respectively.

BNP Paribas Exane projects sales and EPS compound annual growth rates of 7% and 8%, compared to consensus estimates of 9% and 11%, and has adopted a more conservative outlook for the period following semaglutide’s loss of exclusivity in 2032.

The firm’s new price target is derived from a net present value calculation using an 8% weighted average cost of capital and 0% growth rate post-2040, with a bull-bear valuation range of DKK565-250.

According to BNP Paribas Exane, the upgrade to Neutral reflects a more balanced near-term risk-reward profile, noting that free cash flow of $23 billion into perpetuity would be needed to support a 30% share price upside, compared to the company’s fiscal year 2025 guidance of $5-7 billion.

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