Deutsche Bank cuts Novo Nordisk to Sell, shares dip

Analyst

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Deutsche Bank downgraded Novo Nordisk to Sell from Hold and cut its price target by 9% to 265 Danish crowns from 290 crowns, citing persistent concerns about the company's growth trajectory. The stock fell more than 3% in Copenhagen trading Thursday. Analyst Emmanuel Papadakis said the downgrade follows Novo's mixed second-quarter earnings earlier this month, along with takeaways from a London sellside meeting, a CEO non-deal roadshow in Frankfurt, and recent prescription trends. Novo raised its full-year profit and sales outlook in a surprise early earnings release, with both metrics now seen in a range of zero to minus 6% at constant exchange rates versus 2025, up from a prior range of minus 12% to minus 4%. However, investors focused on a narrow sales miss for the new Wegovy pill and a trial setback for its next-generation obesity drug, CagriSema. Sales of the Wegovy pill came in at 3.22 billion Danish crowns ($497 million), just below the 3.3 billion crowns analysts expected. Papadakis said the price target cut aligns with high-single-digit mid-term revenue cuts, citing factors such as ziltivekimab being effectively out of the picture, a limited Medicare prescription bump, and persisting concerns about a return to growth in 2027 and a large cliff problem further out. This is the second ratings cut from Deutsche Bank this year, following a downgrade to Hold in February. Novo continues to compete with Eli Lilly in the obesity drug market, with investors watching for signs that its turnaround can be sustained and that the Wegovy pill can support longer-term growth. Papadakis noted that information uncertainty remains high ahead of Novo's Capital Markets Day on September 21.