Why Novo Nordisk Stock Dropped Today

Core Viewpoint - Novo Nordisk's stock is perceived as undervalued despite recent negative sentiment and downgrades from analysts, particularly due to concerns over slowing growth in its GLP-1 weight loss drug sales [1][4]. Summary by Sections Company Performance - Novo Nordisk's stock fell 2% following reports of weak U.S. prescription data, raising concerns that the company may no longer be a growth stock [2]. - The company previously projected sales growth of 16% to 24% for the year, which is significantly slower than in previous years [2]. - U.S. prescriptions for Wegovy have plateaued since mid-February, while competitors like Eli Lilly's Zepbound are gaining market share [2]. Analyst Ratings - DBS Bank downgraded Novo Nordisk's stock from "buy" to "sell," setting a price target of 330 Danish krone (approximately $50.28), which is about 18% lower than the current trading price [4]. - The downgrade reflects a belief that Novo Nordisk's growth trajectory has come to an end [4]. Investment Perspective - Despite the negative outlook from analysts, the stock is currently priced at 18.2 times earnings, which may be considered fair for its projected growth rate [5]. - There is an argument that this could be an opportune time to invest in Novo Nordisk, as the stock is viewed as potentially undervalued amidst widespread negative sentiment [5].