Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 3 Nov, 25 | NVO | Buy | USD 48.63 | USD 51.0 | USD 54.0 | 62 days | Closed |
11.04%
|
*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.
Solid Revenue Growth: Sales advanced by 18% at CER, climbing from DKK 133.4 billion in H1 FY24 to DKK 154.9 billion in H1 FY25, driven by sustained demand momentum across key business segments
Improved Profitability: Operating profit increased by 29% at constant exchange rates (CER), rising from DKK 57.8 billion in H1 FY24 to DKK 72.2 billion in H1 FY25, reflecting stronger operational efficiency and margin expansion
Gross Margin Contraction: The gross margin declined from 84.9% in H1 FY24 to 83.4% in H1 FY25, reflecting slightly higher production and input costs that pressured profitability
Increase in Effective Tax Rate: The effective tax rate rose from 20.6% in H1 FY24 to 21.6% in H1 FY25, indicating a modest uptick in the company’s overall tax burden
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 48.63 | 43.0 | 51.0 | 54.0 |
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.
Solid Financial Performance: Novo Nordisk delivered strong financial results for the first half of FY25, with revenue climbing to DKK 154.9 billion from DKK 133.4 billion in the previous year, marking an 18% increase at constant exchange rates (CER). Operating profit surged 29% at CER to DKK 72.2 billion, supported by improved operational efficiency and higher-margin contributions from the diabetes and obesity care segments.
Enhanced Profitability and Shareholder Value: Gross profit rose 16% year-on-year to DKK 129.2 billion, while the operating margin improved from 43.3% to 46.6%. Net profit advanced 22% to DKK 55.5 billion, translating to diluted earnings per share of DKK 12.49, compared with DKK 10.17 a year earlier. With a free cash flow of DKK 33.6 billion, Novo Nordisk returned DKK 36.5 billion to shareholders through dividends and share repurchases.
Strong Momentum in Diabetes and Obesity Care: Revenue from diabetes and obesity care climbed 18% to DKK 145.4 billion, accounting for 95% of total sales. Obesity care was the primary growth catalyst, surging 58% at CER to DKK 38.8 billion, driven by the strong global demand for Wegovy®. Diabetes care maintained steady progress, with total GLP-1 therapies up 10% and Rybelsus® recording a 5% increase.
Growth in Rare Disease Segment: The rare disease segment achieved sales of DKK 9.5 billion, up 15% year-over-year. Rare endocrine disorders grew 49%, supported by strong demand for Norditropin® and Sogroya®, while rare blood disorders rose 6%, led by NovoSeven® and Alhemo®.
Broad-Based Geographic Growth: Novo Nordisk’s performance was geographically diversified, with balanced contributions across regions. The U.S. drove 54% of total growth, with sales increasing 17% to DKK 87.3 billion. International Operations expanded 19% to DKK 67.7 billion, led by standout performance in APAC (+35%), alongside growth in China (+6%) and Emerging Markets (+22%).
Advancement in Innovation and Pipeline: The company continued to make significant progress in its R&D pipeline during Q2 FY25. Notable milestones included the EMA’s positive opinion for Ozempic® in peripheral arterial disease, the launch of the CagriSema phase 3b REDEFINE 11 trial, and the advancement of both oral and subcutaneous amycretin to phase 3. Furthermore, Alhemo® received U.S. approval, strengthening the company’s rare disease offerings.
Commitment to Sustainability and Inclusion: Novo Nordisk made tangible progress in its sustainability and social initiatives, expanding access to treatment for 42.8 million people with diabetes and 2.9 million with obesity worldwide. Additionally, female representation in senior leadership increased to 43%, reflecting the company’s focus on inclusive growth and responsible corporate practices.
Novo Nordisk delivered a strong first-half performance in FY25, underscored by double-digit growth in revenue, profitability, and shareholder returns. Sales rose 18% at constant exchange rates to DKK 154.9 billion, driven by exceptional momentum in obesity care, robust diabetes treatment demand, and solid expansion in rare diseases. Operating profit increased 29%, supported by improved efficiency and a higher-margin product mix, while free cash flow and shareholder distributions remained strong. Broad-based geographic growth, particularly in the U.S. and APAC, along with continued pipeline advancement and sustainability achievements, reinforced Novo Nordisk’s position as a global leader in healthcare innovation and responsible growth.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Novo Nordisk A/S (NYSE: NVO) at the current market price of USD 48.63 as of Nov 03,2025 at 9:30 am PST.
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 November 3, 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.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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