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Investing.com - BMO Capital raised its price target on Novo Nordisk (NYSE:NVO) to $55.00 from $50.00 on Tuesday, while maintaining a Market Perform rating on the Danish pharmaceutical company’s stock. The pharmaceutical giant, with a market capitalization of $251 billion, has demonstrated robust financial health according to InvestingPro data, maintaining an impressive gross profit margin of 84%.
The firm updated its model ahead of Novo Nordisk’s upcoming third-quarter 2025 earnings report, scheduled for November 5, which will be the first quarterly results presented by new CEO Mike Doustdar. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with a favorable PEG ratio of 0.62 indicating attractive pricing relative to growth.
BMO Capital expects investors will be focused on Doustdar’s efforts to address challenges at the company, though the firm does not anticipate a complete turnaround in the third-quarter results.
The research firm’s revenue projection for the quarter stands at DKK 78.7 billion, above the consensus estimate of DKK 77.4 billion, while its earnings per share forecast is DKK 4.37, below the consensus of DKK 5.04.
BMO Capital’s model adjustments resulted in the revised price target increase, though the firm maintained its Market Perform rating on Novo Nordisk shares.
In other recent news, Novo Nordisk’s financial landscape has seen various developments. Goldman Sachs has reiterated its Buy rating on Novo Nordisk, citing potential upside from the company’s Alzheimer’s disease trials, specifically the EVOKE/EVOKE+ trial of semaglutide. Meanwhile, BMO Capital maintains a Market Perform rating, noting that while the oral semaglutide weight loss data from the OASIS-4 trial showed promise, Eli Lilly’s orforglipron remains a strong competitor. UBS continues to hold a Neutral rating on Novo Nordisk, following the company’s presentation at the European Association for the Study of Diabetes, which was described as having only incremental data.
In addition to these analyst updates, Novo Nordisk has made strategic changes by cutting a U.S. sales team focused on obesity and diabetes education as part of broader restructuring efforts under CEO Maziar Mike Doustdar. This restructuring marks an early step in the company’s cost-cutting initiatives. Furthermore, Novo Nordisk’s CEO, Mike Doustdar, has raised questions about the alignment of President Donald Trump’s proposed 100% tariffs on imported branded drugs with existing EU-US trade agreements. These recent developments highlight the dynamic environment in which Novo Nordisk is operating.
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