Buy a dip in Novo Nordisk stock on Wegovy strength: analysts

Analysts at Bank of America are bullish on Novo Nordisk (NYSE:) stock, stating they would be buyers on weakness.

Morgan Stanley, which has an Overweight rating and DKr 990.00 price target on the stock, said the acceleration in Wegovy starting dose prescriptions if sustained, “could support dramatic earnings upgrades.”

The firm notes that competitor obesity data readouts have rung alarm bells that the Novo / Lilly duopoly might be under threat.

However, the bank expects Novo and Lilly to “remain diabesity leaders, reflecting the strength of their respective pipelines, consolidation credentials and broad economic moats.”

“We would be buyers on weakness ahead of a potential guidance upgrade in August,” states Morgan Stanley.

BofA reiterated a Buy rating on NVO stock, noting that the Wegovy supply is strong. “This weeks IQVIA data shows a further material inflection for Wegovy, with latest TRx at 165k, vs 157k last week, and c90k at the start of the year,” wrote analysts at BofA.

“TRx has grown 10k per week for 4 weeks in a row. Low-dose TRx is similarly continuing to inflect with latest at c44k vs c38k last week, and c5-6k at the start of the year. With strong trends, we raise our Wegovy FY24 estimate to DKK66bn (vs cons DKK61bn).”