BMO Capital Maintains a Hold Rating on Novo Nordisk (NVO)

Novo Nordisk A/S (NYSE:NVO) is one of the Most Profitable Large Cap Stocks to Invest in Now. On March 30, BMO Capital reiterated a Market Perform rating on Novo Nordisk A/S (NYSE:NVO) with a $45 price target.

​The firm noted that the rating is based on strong momentum from the Wegovy pill launch and several other underappreciated growth drivers. However, BMO also flagged some technical overstatements and industry-wide growth risks, which led to a Neutral rating.

The firm noted the Wegovy pill launch to be strong and in line with expectations. However, the firm pointed out that the script‑growth numbers may be slightly inflated because IQVIA’s capture rate of prescriptions has increased to about 60%, up from roughly 50% at the very start of the launch.

​Moreover, BMO also highlighted Novo’s recent partnership with HIMS and noted the deal to be incrementally positive for Novo product uptake. Following the collaboration, HIMS has stopped promoting compounded GLP‑1s and is now aligning with Novo, which helps address some compounding‑related channel‑dilution concerns. You can read more about the deal here.

​​Novo Nordisk A/S (NYSE:NVO) is a global healthcare company that develops, manufactures, and markets medicines for serious chronic diseases. It is a leader in diabetes care (including insulin and Ozempic), obesity management (Wegovy), haemophilia care, and rare endocrine disorders.

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