Morgan Stanley Upgrades Novo Nordisk A/S (NVO) to Equal Weight From Underweight – Here’s Why

Novo Nordisk A/S (NYSE:NVO) is one of the best undervalued stocks to invest in right now.

Novo Nordisk A/S (NYSE:NVO) was upgraded to Equal Weight from Underweight by Morgan Stanley on March 3. The firm also adjusted the price target on the stock to $40 from $42, stating that the stock’s valuation post the selloff on the REDEFINE-4 data better reflects its mid-term growth uncertainty and the loss of exclusivity risks on semaglutide. It further told investors in a research note that consensus estimates have been rebased.

In a separate development, Novo Nordisk A/S (NYSE:NVO) announced on February 27 that the US Food and Drug Administration approved three new indications for once-weekly Sogroya injection 5 mg, 10 mg, or 15 mg, a long-acting growth hormone, for children aged at least 2.5 years with Idiopathic Short Stature (ISS), short stature born Small for Gestational Age without catch-up growth by the age of 2 years, and growth failure associated with Noonan Syndrome.

The approval marks the first long-acting growth hormone supporting children with these three indications in the United States. Somapacitan-beco also holds approval for children aged at least 2.5 years with growth hormone deficiency. Since the option is once-weekly, it helps children and caregivers struggling with daily injections for hormone treatment.

Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products. Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.

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