Key Stats for NVO Stock
- Price Change for NVO stock: -16.4%
- NVO Share Price as of Feb. 23: $39.63
- 52-Week High: $93.8
- NVO Stock Price Target: $53.63
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What Happened?
Novo Nordisk (NVO) shares plunged 16.4% on Feb. 23 after investors reacted negatively to new clinical trial data for its next-generation obesity drug, CagriSema. The sharp move erased much of the remaining gains from the Wegovy-driven rally that dominated Novo’s stock performance over the past two years.
According to Reuters, results from a Copenhagen trial showed CagriSema failed to clearly outperform Eli Lilly’s competing obesity treatment. While Novo reported strong absolute weight loss, the relative comparison mattered more to investors focused on market leadership in GLP-1 therapies.
The selloff was amplified by broader concerns following Novo’s recent guidance for 2026. Management projected adjusted sales growth between -5% and -13% at constant exchange rates, which signaled a meaningful slowdown after several years of rapid expansion.
At the same time, sentiment across the obesity drug space weakened, as investors reassessed competitive dynamics and long-term pricing power. Novo’s stock reaction reflected how much future growth expectations are tied to continued innovation leadership.
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Despite the sharp decline, analysts still see notable upside based on current estimates. NOVO’s average Street Target Price stands at $53.63, compared with a Feb. 23 closing price of $39.63.
That implies roughly 35% upside, although the range of targets remains wide. Analysts’ targets reflect confidence in Novo’s existing diabetes and obesity franchises, even as next-generation drugs face higher scrutiny.
The Street Targets data also shows that analysts have gradually lowered price targets over the past year. This trend mirrors growing uncertainty around Novo’s longer-term growth trajectory.
What the Market Is Telling Us About NVO Stock
The steep decline suggests investors are repricing Novo Nordisk as a more mature pharmaceutical company rather than a hyper-growth obesity play. While growth expectations are moderating, Novo’s current profitability remains exceptionally strong.
On a trailing basis, Novo generates an 82.4% gross margin and a 45.5% EBIT margin. These margins rank among the highest in the global pharmaceutical industry and highlight the company’s pricing power and operating efficiency.
Novo also continues to generate substantial cash. In the last twelve months, the company produced about $59 billion in free cash flow, supporting dividends and buybacks even during periods of slower growth.
However, the market appears less willing to assign premium multiples without clear evidence of continued obesity drug leadership. Competition from Eli Lilly has become a central narrative driving valuation compression.
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Should You Invest in Novo Nordisk A/S?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up NVO, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track NVO alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
