Buy Call on Novo Nordisk (NVO) Based on Undervaluation and Restructuring

17 days ago

Parkev Tatevosian, CFA

"I also updated my fair value calculation for Novo Nordis stock. There was a few changes I needed to make. I updated the number of shares outstanding. I updated the company's total debt and not operating assets. And overall, that changed the intrinsic value per share to $88. And the fair value, that's the fair value. That's the value I believe this business is worth today. But you can buy Novo Nordis stock at $48 a share. So, I see this business as being one that's undervalued, of course, increased in risk because of the company's recent developments."

The speaker updates his fair value calculation for Novo Nordisk, arriving at an intrinsic value of $88 per share while noting the stock is trading at $48, thus calling it undervalued. He acknowledges the increased risk due to recent developments but maintains a long-term buy recommendation.

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