Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 17 Sep, 25 | NVO | Buy | USD 57.2 | USD 60.0 | USD 64.0 | 1 day | Closed |
4.90%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Novo Nordisk A/S, a healthcare company, engages in the research, development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments, Diabetes and Obesity care, and Rare Disease. The Diabetes and Obesity care segment provides products in the areas of insulins, GLP-1 and related delivery systems, oral antidiabetic products, obesity, glucagon, needles, and other chronic diseases. The Rare Disease segment offers products in the areas of haemophilia, blood disorders, endocrine disorders, growth disorders, and hormone replacement therapy. The company has a collaboration agreement with Gilead Sciences, Inc.; and research collaboration with Novo Nordisk to discover cell-specific carriers of nucleic acid therapeutics. The company was founded in 1923 and is headquartered in Bagsvaerd, Denmark.
Improved Operating Profitability: Operating profit rose 29% at CER, from DKK 57.8 billion in H1 FY24 to DKK 72.2 billion in H1 FY25
Revenue Growth: Sales grew 18% at CER, from DKK 133.4 billion in H1 FY24 to DKK 154.9 billion in H1 FY25
Higher Effective Tax Rate: The effective tax rate increased from 20.6% in H1 FY24 to 21.6% in H1 FY25
Decline in Gross Margin: Gross margin slipped from 84.9% in H1 FY24 to 83.4% in H1 FY25
Novo Nordisk faces significant risks from increasing competition in GLP-1 and obesity treatments, potential supply chain disruptions, and pricing pressures from regulators and payers, which could materially affect its growth trajectory
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 57.2 | 49.0 | 60.0 | 64.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Financial Momentum: Novo Nordisk reported a robust financial performance in the first half of FY25, with sales rising to DKK 154.9 billion compared to DKK 133.4 billion in the prior year, representing 18% growth at constant exchange rates (CER). Operating profit expanded by 29% at CER, reaching DKK 72.2 billion, reflecting improved efficiency and higher-margin contributions from obesity and diabetes treatments.
Profitability and Shareholder Returns: Gross profit increased to DKK 129.2 billion, up 16% year-on-year, while operating margin strengthened from 43.3% to 46.6%. Net profit grew 22% to DKK 55.5 billion, translating into diluted earnings per share of DKK 12.49, compared with DKK 10.17 in Q2 FY24. Free cash flow stood at DKK 33.6 billion, enabling the company to return DKK 36.5 billion to shareholders through dividends and share buybacks.
Diabetes and Obesity Care Growth: Sales in diabetes and obesity care rose 18% to DKK 145.4 billion, accounting for 95% of overall company sales. Obesity care was the key driver, surging 58% at CER to DKK 38.8 billion, driven primarily by strong uptake of Wegovy®. Diabetes care also showed steady growth, with total GLP-1 therapies increasing 10% and Rybelsus® expanding by 5%.
Rare Disease Performance: The rare disease segment generated DKK 9.5 billion in sales, up 15% year-on-year. Growth was led by rare endocrine disorders, which advanced 49% due to demand for Norditropin® and Sogroya®. Rare blood disorders also contributed positively, with sales increasing 6%, supported by NovoSeven® and Alhemo®.
Geographic Diversification: Sales growth was well balanced across geographies. The U.S. contributed 54% of growth with sales rising 17% to DKK 87.3 billion, while International Operations grew 19% to DKK 67.7 billion. Within international regions, APAC achieved standout growth of 35%, supported by China (+6%) and Emerging Markets (+22%).
Innovation and Pipeline Progress: Novo Nordisk advanced its innovation pipeline significantly in Q2 FY25. Key developments included EMA’s positive opinion for Ozempic® in peripheral arterial disease, initiation of the CagriSema phase 3b REDEFINE 11 trial, and advancement of both oral and subcutaneous amycretin to phase 3. Additionally, Alhemo® received U.S. approval, further strengthening the rare disease portfolio.
Sustainability and Social Impact: On the sustainability front, Novo Nordisk reported progress in expanding access to care, reaching 42.8 million people with diabetes and 2.9 million with obesity globally. The company also increased female representation in senior leadership to 43%, reinforcing its commitment to being recognized as a sustainable and inclusive employer.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Novo Nordisk A/S (NYSE: NVO) at the closing market price of USD 57.20, as on Sep 16, 2025
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| NVO Novo Nordisk A/S |
-8.435 14.31% | 50.49 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
-8.56 14.49% | 50.50 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
-6.635 1.41% | 465.38 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
4.00 0.53% | 759.02 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
| CSLLY CSL Ltd |
0.39 0.63% | 62.39 | 42.45 | 26.95 | 7.05 | 5.80 | 7.85 | 26.51 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on September 17, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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