On Thursday, TD Cowen reaffirmed its positive stance on shares of Novo Nordisk (NYSE:NVO), a global healthcare company specializing in diabetes and obesity care, maintaining a Buy rating with a price target of $155.00. In addition to the rating confirmation, the analyst highlighted Novo Nordisk as Best Idea 2025, indicating a favorable outlook for the company's future performance.
The analyst noted that despite increased competition in the diabetes and obesity markets, the overall market expansion has been beneficial for Novo Nordisk, positioning it favorably within the sector. A key driver for the company's long-term growth is anticipated to be CagriSema, a treatment with Phase III obesity data soon to be released. The analyst expressed optimism about the upcoming data readout.
The report also pointed out that Novo Nordisk is expected to encounter several other catalysts in the upcoming one to two years, with a broader pipeline that appears promising. The company's management team was praised for its creative efforts to expand into cardiovascular disease (CVD) and metabolic-associated steatohepatitis (MASH), further diversifying its portfolio.
In terms of financial metrics, Novo Nordisk's stock is currently trading at approximately 29 times TD Cowen's 2025 earnings per share (EPS) estimate. This valuation stands in contrast to Eli Lilly's (NYSE:LLY) 36 times multiple and the industry group average of around 15 times. The $155.00 price target set by TD Cowen is based on a 40 times multiple of the firm's 2025 EPS estimate of DKK 27.25 for Novo Nordisk.
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