Morgan Stanley attributed its negative thesis on the Danish company to its view that the weight loss prescription growth in the U.S. would slow down amid competitive pressures.
Novo Nordisk A/S (NVO) shares slid 3% in the early premarket session on Monday as the Ozempic and Wegovy weight-loss drugmaker snagged a bearish recommendation from a Wall Street firm.
Morgan Stanley analyst downgraded Novo Nordisk stock to ‘Underweight’ from ‘Equal Weight’ and also reduced the price target for the stock to $47 from $59, the excerpts of the note published by The Fly showed. Morgan Stanley’s updated price target implies a nearly 13% downside from the stock’s Friday close.
The stock was among the top five trending equity tickers on Stocktwits early Monday. Retail sentiment toward the stock, however, remained ‘extremely bullish’ (76/100), and the message volume on the stream was ‘high.’
Morgan Stanley attributed its negative thesis on the Danish company to its view that the weight loss prescription growth in the U.S. would slow down amid competitive pressures. According to the firm, this would drive downside revisions to the 2026 and 2027 consensus estimates for Novo Nordisk.
Analysts at the firm said the lack of momentum in U.S. prescriptions for Wegovy, Ozempic and Rybelsus makes it cautious on the company’s short-term growth profile. Additionally, the analyst noted that the lack of catalysts exacerbates the downside risk profile over the next six months.
A New York Times report stated last week that the company was cutting jobs following the profit warning it issued in late July.
Novo Nordisk stock has lost over 34% this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<