‘Time to Double Down,' Says Top Investor About Novo Nordisk Stock

Business Insider

a day ago

It has been a rough few seasons for Novo Nordisk (NYSE:NVO) investors, as the company's share price has tumbled some 60% over the past twelve months. Though Novo Nordisk remains the dominant player in the burgeoning GLP-1 market, worries over a complex regulatory environment, lowered guidance, and increasing competition, among other concerns, have whittled away some of its support.
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And yet, the company's Q2 2025 earnings call last reflected rising sales of 18% during the first half of the year, increased operating profits of 29% for the first six months as well, and advancements with strategic R&D initiatives including an oral weight loss medicine.
The market responded with a warmth that has been missing, and NVO's share price has increased by double digits since the earnings call.
Top investor James Foord thinks a turnaround is indeed beckoning.
'The recent stock correction presents a rare long-term buying opportunity, supported by a strong pipeline, manufacturing expansion, and international momentum,' asserts the 5-star investor, who is among the top 2% of TipRanks' stock pros.
The investor notes that the company succeeded in delivering strong numbers in Q2, with GLP-1 drugs leading the way. While sales for Ozempic – used to treat Type 2 diabetes – jumped by 35%, the Wegovy weight loss drug saw its sales increase by 67%.
And it's not just the North American market which is gaining steam, points out Foord. Japan experienced a 91% increase in GLP-1 drugs in Q2. It is this dominance in the GLP-1 market which gives Foord plenty of bullish confidence in NVO going forward – especially as Wegovy aims for a 2026 tablet form.
'Novo has shown superior performance in their latest pill version of Wegovy versus Lily, and this is very encouraging,' adds Foord.
With the company spending billions of dollars to increase production capabilities, including in North Carolina, and the potential for GLP-1 drugs to be used for additional morbidities such as Alzheimer's and cardiovascular disease, the investor predicts NVO is on the road to recovery.
'With new facilities coming online, oral drugs in development, and global demand still exploding, I see NVO not only rebounding but potentially doubling in the next few years,' concludes Foord. 'I'm buying more.'
No surprise here, Foord is rating NVO a Strong Buy. (To watch James Foord's track record, click here)
Though slightly more tempered, Wall Street is also optimistic about NVO. With 2 Buy ratings and 3 Holds, NVO enjoys a Moderate Buy consensus rating. Its 12-month average price target of $71.75 has an upside north of 40%. (See NVO stock forecast)
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