Weight-Loss Giant Novo Nordisk Tumbles To 200-Day Average Support: 'Weakness Could Be Buying Opportunity,' Analyst Says

Earnings per share (EPS) also fell short of analyst expectations, reporting DKK 4.49 (USD 0.658) compared to the expected DKK 4.86 (USD 0.707).

Analyst Takeaways: “The Ozempic and Wegovy misses were disappointing, although we note that the guidance appear to reflect an acceleration in Wegovy in the 2H as obesity supply improves,” wrote Goldman Sachs analyst James Quigley.

Quigley highlighted that half of the Wegovy shortfall was due to accounting adjustments, while improvements in supply and ongoing demand exceeding supply in the U.S. contributed to an implied beat for Wegovy sales outside the U.S.

Goldman Sachs maintains a positive outlook for the obesity portfolio through 2025 and beyond, viewing the underlying guidance upgrade as a sign that Wegovy supply issues are improving.

“The shortfall in Ozempic and Wegovy sales this quarter is likely to be disappointing in the short term and could impact the share price this morning,” Quigley stated.

However, with Novo’s stock currently down 18% from its June highs, Quigley indicated that “any weakness could be a buying opportunity” in the second half of 2024, given the potential acceleration of the obesity franchise.

Goldman Sachs holds a 12-month price target of $160 on US-listed Novo Nordisk shares, implying a 33% surge from current levels.

Market Reactions: Shares of the Danish Pharmaceutical giant fell by more than 6% on Wednesday, marking their worst session since August 4, 2022, when they saw a decline of over 12%.

From a technical perspective, Novo Nordisk is approaching the support level of the 200-day moving average, which has not been reached since November 2022.

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