Nordisk's (NGO 3.72%) Its position as a hot healthcare stock got a boost from one analyst as the trading week came to a close. Thanks to a significant price target increase, the Danish pharmaceutical company's share price closed the day almost 4% higher. That was more than enough to overtake the leader. S&P 500 index, which rose a relatively slight 0.8%.
One analyst raised his price target by double digits
The analyst who gave Novo Nordisk that good shot in the arm was Morgan StanleyIt's Mark Purcell. Well before the market opened that day, Purcell raised his price target for the company's shares by 16% to 930 Danish crowns ($135) from its previous 800 crowns ($116). Like many other forecasters, he is a Novo Nordisk bull; He maintained his solid Overweight (read: Buy) recommendation on the stock while raising his price target.
Nowadays it is not difficult to be optimistic about Novo Nordisk. The European pharmaceutical company has a very successful product on its hands: Wegovy, the anti-obesity drug that has found a fairly receptive patient base in the US (with its high proportion of overweight citizens).
Weight loss has been a big step forward for Novo Nordisk in recent times. This was clearly illustrated by the company's performance throughout 2023, which saw its sales increase by a solid 36%. Of its four therapeutic areas, obesity care was, by far, the one that grew the most, with its revenue growing 154% about the 2022 count.
However, competition is on the way
The pharmaceutical sector is full of solid, well-capitalized companies, and some are already coming to Novo Nordisk's lunch. Eli LillyDiabetes drug Mounjaro has gained approval from the US Food and Drug Administration (FDA) for the treatment of obesity and is hitting the market under the eye-catching brand. Zepbound. Meanwhile, Viking therapeutics reported very promising results from a phase 2 clinical trial of its own weight-loss drug candidate.
So while Novo Nordisk remains the leader in this game, investors should keep an eye on the moves of other players.
