Novo Nordisk (NVO) Q1 2025 Earnings May Fall Short of Expectations

GuruFocus
2025.03.30 09:45
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Novo Nordisk's Q1 2025 earnings may fall short of expectations due to slower sales growth of Ozempic and Wegovy. Analysts predict sales of 77 billion Danish krone, a 17% increase, with EBIT expected to rise by 14%. The full-year sales growth forecast is adjusted to 14%-22%. Despite challenges, analysts maintain a "Buy" rating with a price target of 910 krone, indicating a potential upside of 56.79% from the current stock price of $69.30. The projected GF Value for the stock in a year is $159.72, suggesting a 130.48% upside.

Summary Points:

  • Novo Nordisk's Q1 2025 sales growth may fall short of expectations due to slower performance of Ozempic and Wegovy.
  • The company's full-year sales forecast has been adjusted to a range of 14%-22% growth.
  • The stock has a promising upside potential, with a current "Outperform" rating from analysts.

Novo Nordisk Q1 2025 Financial Projections

Novo Nordisk (NVO, Financial) is facing challenges in meeting consensus estimates for the first quarter of 2025, largely attributable to the deceleration in sales growth of its flagship drugs, Ozempic and Wegovy, alongside unfavorable exchange rate impacts. Analysts at BofA Securities predict that sales will reach 77 billion Danish krone, marking a 17% year-over-year increase. Furthermore, Earnings Before Interest and Tax (EBIT) is expected to climb by 14% to hit 36 billion Danish krone. BofA has adjusted its full-year sales growth outlook to a range of 14%-22% and continues to uphold a "Buy" rating for Novo Nordisk, with a price target firmly set at 910 krone.

Wall Street Analysts Insights

Delving into the one-year price targets provided by nine analysts, the average target for Novo Nordisk AS (NVO, Financial) is $108.66. This range extends from a high estimate of $160.39 to a low of $65.16. The average target suggests a significant potential upside of 56.79% from the current stock price of $69.30. For further detailed estimates, investors can refer to the Novo Nordisk AS (NVO) Forecast page.

Examining brokerage recommendations, Novo Nordisk AS (NVO, Financial) garners an average recommendation of 2.3 from 15 firms, indicating an "Outperform" status. This rating operates on a scale where 1 implies a Strong Buy and 5 signifies Sell.

Understanding GF Value and Future Potential

According to GuruFocus estimates, the projected GF Value for Novo Nordisk AS (NVO, Financial) in a year's time stands at $159.72. This denotes a remarkable upside of 130.48% from the current price of $69.3. The GF Value represents the fair market value that the stock is anticipated to trade at, derived from historical trading multiples, past business growth, and future performance projections. Investors can find more comprehensive data on the Novo Nordisk AS (NVO) Summary page.

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