PFE - Novo Nordisk: Buy On Dips
2024-07-04 12:45:03 ET
Summary
- Novo Nordisk's Ozempic continues gaining popularity in weight management and diabetes markets, along with Wegovy, raising the question of whether the same can be hoped for the stock.
- There's a lot to like about the company. It's seeing robust sales growth, high profit margins and has also upgraded its full year outlook.
- However, there are rising challenges too. These include health risks from its treatments, criticism from Biden on high prices in the US along with greater competition down the line.
- The stock's high market multiples also work against it now, making it one to buy only on dips.
There’s exactly one reason that drew me to write on the Danish pharmaceuticals company Novo Nordisk (NVO) (NONOF) today. And that’s Ozempic. As it happens, there has been such a steady stream of its mention in my news and podcast feeds, my curiosity was piqued. I’d even go so far as to say that its popularity might have come second only to updates on the all important general elections being held in various parts of the world this year....
Novo Nordisk: Buy On Dips