Should You Buy Novo Nordisk Right Now?
Wall Street analysts can't agree on Novo Nordisk (NYSE: NVO), with Morgan Stanley recently cutting its rating to underweight on the back of disappointing growth in key prescriptions in the U.S., and HSBC Holdings recently raising its rating to a buy on the strength of the potential of its pipeline. Who's right?
The HSBC approach, in this case, may be sensible, at least on a risk-reward basis. The nearly 50% drop in Novo Nordisk shares is likely a reflection of the market's disappointment in Wegovy's (semaglutide) share loss in the weight loss market to Eli Lilly's Zepbound (tirzepatide).
That said, the company has a few upcoming events that could return the stock to favor. First, it's leading the race to get an oral weight loss pill (oral Wegovy) approved and expects a decision from the FDA this year. Moreover, there's data to suggest superiority over Eli Lilly's candidate, orforglipron.
Source Fool.com
