NVO - Novo Nordisk Remains The Better Buy After A Moderate Pullback

2024-04-22 09:00:00 ET

Summary

• NVO continues to be rated as a Buy, with the stock already charting an impressive +16.1% rally over the past three months, well outperforming the wider market at +4.8%.
• The management recently announced multiple expansions in its manufacturing/fill finish capacities, with the ongoing shortages still implying immense consumer demand.
• We believe that these capex will eventually be accretive to NVO's top/bottom lines, especially since the PFE CEO, Albert Bourla, has estimated an obesity market size of up $150B.
• With the competitors still a few years away from US FDA approval, we believe that NVO and LLY are still poised to enjoy a two horse race in the obesity/diabetes market.
• NVO remains the US market leader with 54% in market share based on total prescriptions, with the relatively reasonable FWD P/E offering an improved margin of safety.

We previous covered Novo Nordisk ( NVO ) stock in January 2024, discussing why its investment thesis remained robust, thanks to its healthier balance sheet, growing pipelines, and the consistently raised forward guidance thus far....

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