Long-term Buy Opportunity for Novo Nordisk

28 days ago

Parkev Tatevosian, CFA

"So I mentioned Novon Nordisk experiencing difficulties in 2025. Stock price is at $48. It's very close to the 52-week low of $45. So, it's trending down even though the company has this phenomenal product that's gaining significant sales, but the company is not growing sales as much as investors had hoped. And it's undergoing significant headwinds in the weight loss market with compounders with Eli Liy with the US administration pressuring Novo and others to lower prices and offer more accessible treatments. And so I can understand the lower enthusiasm from investors, but I've calculated a fair value of this business at $88. And I don't expect the headwinds to go away anytime soon, but I think longer term this could be an excellent addition to investor portfolios, especially if you don't already have a player in this industry to diversify your portfolio."

The speaker outlines significant headwinds facing Novo Nordisk, including competitive pressure and regulatory challenges, while highlighting that the stock is trading near its 52-week low at $48. However, based on a fair value calculation of $88, he suggests that the long-term potential of Novo Nordisk makes it an attractive buy for investors seeking exposure in the obesity and diabetes treatment space.

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