Analysts at Bank of America are bullish on Novo Nordisk (NYSE:) shares, saying they will buy if there is weakness.
Morgan Stanley, which has an “Outperform” rating and a DKK 990 target price on the stock, said the acceleration in Wegovy’s launch doses, if sustained, “could support sharp earnings growth.”
The firm notes that competitors’ obesity data has raised alarm bells that the Novo/Lilly duopoly may be in jeopardy.
However, the bank expects Novo and Lilly to “remain leaders in the diabetes space, reflecting the strength of their respective pipelines, consolidation opportunities and broad economic moats.”
“We will be buyers on weakness ahead of a potential upgrade in August,” Morgan Stanley said.
BofA reiterated its Buy rating on NVO shares, noting that Wegovy’s offering is strong. “IQVIA data this week shows further significant movement in the Wegovy price, with the latest TRx at 165k, up from 157k last week and from 90k at the start of the year,” BofA analysts wrote.
“TRx grew by 10k per week for 4 weeks in a row. Low dose TRx similarly continues to change, with the latest level being c44k versus c38k last week and c5-6k at the start of the year. With strong trends, we are raising our Wegovy estimate for FY24 will be DKK 66 billion (vs. DKK 61 billion).