Citi has raised its price target on Novo Nordisk (NYSE:NVO) to DKK330 ahead of second-quarter results on 5 August, citing the strength of the Danish drugmaker's Wegovy pill launch.
The broker lifted its 2026 sales and operating income estimates by 4% to 5%, and its earnings per share forecasts for 2027 to 2030 by around 7%, on currency movements and stronger second-quarter Wegovy trends.
The new target is based on 16 times 2027 earnings, up from 15 times, reflecting better Wegovy growth.
For the second quarter, Citi forecasts adjusted operating income of DKK27.2 billion, down 9% at constant currencies, on sales of DKK72.7 billion, down 1%, both excluding US 340B rebate effects.
The declines mainly reflect continued price pressure across both the obesity and diabetes franchises, partially offset by the oral Wegovy launch, forecast to contribute DKK4 billion, or $630 million.
The key question is whether, and by how much, Novo raises full-year guidance given strong prescription trends for both pill and injectable Wegovy through the launch of Eli Lilly's rival Foundayo.
Citi sees an upgrade as expected and already priced in, and kept its neutral rating for that reason.
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