Novo Nordisk (NYSE: NVO), the Danish drugmaker, has faced a tough period as its share price has dropped about 55% from last summer’s peak. This week, a study in The New England Journal of Medicine showed that patients using Eli Lilly’s weight loss drug Zepbound lost more weight than those taking Novo Nordisk’s Wegovy.
Despite this setback, many Wall Street analysts remain optimistic about Novo Nordisk’s future. They expect the company’s stock to rise by 35% over the next year.
According to financial data provider LSEG, the average price target from 12 analysts is $89.99, which suggests significant upside from the current price. Some analysts are even more positive, with the highest target nearly double the current share price.
Among the 12 analysts surveyed in May, two rated Novo Nordisk as a strong buy, four as a buy, and four as a hold. Only one analyst gave an underperform rating, and one recommended selling. Notably, even the lowest price target is only about 9% below the current price.
Analysts’ confidence is based on Novo Nordisk’s continued strong sales growth, mainly driven by its semaglutide products—Ozempic for type 2 diabetes and Wegovy for obesity.
Novo Nordisk is also looking ahead to new growth opportunities. It is awaiting U.S. approval for an oral semaglutide version to treat obesity. The company has applied for approval in the U.S. and European Union for a once-weekly 2.4 mg dose of the drug to treat metabolic dysfunction-associated steatohepatitis (MASH), a serious liver disease. Additionally, Novo Nordisk plans to seek approval for CagriSema, a drug for obesity and type 2 diabetes, in early 2026.
However, the company faces challenges. It lowered its full-year 2025 forecast due to semaglutide compounding issues in the U.S. CEO Lars Fruergaard Jørgensen said the company is working to prevent illegal and unsafe compounding and to improve patient access to its GLP-1 treatments.
Competition is also increasing. Eli Lilly’s diabetes drug Mounjaro and weight loss drug Zepbound are gaining market share. Lilly plans to apply for approval of its oral obesity drug orforglipron later this year and for type 2 diabetes treatment in early 2026. Other drugmakers developing obesity treatments include Altimmune, Amgen, Boehringer Ingelheim, Pfizer, Roche Holding, and Viking Therapeutics.
While Novo Nordisk faces headwinds, many analysts believe the company still has strong growth potential in a rapidly evolving market.
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Indian Pharma Catching Up To Ozempic And Mounjaro Demand
Wall Street Sees Obesity Drug Stock Soaring 35 Percent Within Next Year
