On Thursday, an analyst from Deutsche Bank (ETR:DBKGn) adjusted the price target for Novo Nordisk (CSE:NOVOb) (NOVOB:DC) (NYSE: NYSE:NVO), a global healthcare company specializing in diabetes care, to DKK1,000.00, down from the previous DKK1,100.00. Despite this reduction, the analyst maintained a Buy rating on the company's stock.
The adjustment follows the analyst's review of Novo Nordisk's third-quarter performance and the market's reaction to the company's financial guidance. Earlier in the day, Novo Nordisk's shares experienced a significant uptick, which the analyst described as "rather generous" in light of some nuanced considerations that were highlighted in their initial review.
The market, however, retracted its initial positive response during a call where Novo Nordisk provided a forward-looking statement on its revenue outlook for the fiscal year 2025. The company indicated an expectation of high-teens revenue growth for FY25, which, according to Deutsche Bank's and consensus models, was consistent with the projected growth of +19/20% that had been estimated that morning.
Despite this, the market interpreted the guidance differently, leading to a retraction of the earlier rally. The Deutsche Bank analyst suggested that the market's reaction to the FY25 guidance comment was somewhat misguided, as the directional outlook should have been seen as a reaffirmation of the current estimates.
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