Latest news with #downgrade
Yahoo
5 hours ago
- Business
- Yahoo
Why Novo Nordisk Stock Crumbled Again Today
Key Points An analyst downgraded the stock. He now feels it is only a hold as opposed to a buy. 10 stocks we like better than Novo Nordisk › The hits just kept coming for beleaguered Ozempic and Wegovy maker Novo Nordisk (NYSE: NVO) on Thursday. The company, which has been slammed with investor sell-offs since cutting its guidance on Tuesday, fell by almost 6% as yet another analyst weighed in with a bearish take on its prospects. The S&P 500 index, meanwhile, traded down only slightly. A downgrade to hold That pundit was HSBC's Rajesh Kumar, who downgraded his recommendation on Novo Nordisk that morning. Kumar now believes the stock is only worthy of a hold recommendation, down from his previous assessment of buy. He also significantly lowered his price target, chopping it to 360 Danish krone ($55.49) per share from the preceding 680 krone ($104.81). According to reports, Kumar particularly expressed concern about compounded weight-loss drugs, a form of competition that has affected Novo Nordisk's otherwise lively Ozempic and Wegovy sales. The analyst wrote that although the U.S. Food and Drug Administration (FDA) has banned compounding, rivals continue to sell such drugs illegally. Kumar does not believe this situation will change much in the near future, so he believes current estimates for total GLP-1 drug sales might be overestimated. Reasons to be cheerful The HSBC pundit certainly raises valid concerns and questions, although the ultimate effect of the compounding ban on Novo Nordisk will depend on how effectively it's enforced; perhaps, in contrast to Kumar's view, the offending parties will be caught and punished. I wouldn't be as down on the Danish company as the analyst. That hot competition only proves how popular Wegovy and its ilk are at the moment, and in a vast country like the U.S. that has a clear problem with obesity, that should continue to motor its fundamentals higher. Should you buy stock in Novo Nordisk right now? Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Novo Nordisk wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,098,838!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 HSBC Holdings is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends HSBC Holdings and Novo Nordisk. The Motley Fool has a disclosure policy. Why Novo Nordisk Stock Crumbled Again Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
11 hours ago
- Business
- Globe and Mail
Why Novo Nordisk Stock Crumbled Again Today
Key Points An analyst downgraded the stock. He now feels it is only a hold as opposed to a buy. 10 stocks we like better than Novo Nordisk › The hits just kept coming for beleaguered Ozempic and Wegovy maker Novo Nordisk (NYSE: NVO) on Thursday. The company, which has been slammed with investor sell-offs since cutting its guidance on Tuesday, fell by almost 6% as yet another analyst weighed in with a bearish take on its prospects. The S&P 500 index, meanwhile, traded down only slightly. A downgrade to hold That pundit was HSBC 's Rajesh Kumar, who downgraded his recommendation on Novo Nordisk that morning. Kumar now believes the stock is only worthy of a hold recommendation, down from his previous assessment of buy. He also significantly lowered his price target, chopping it to 360 Danish krone ($55.49) per share from the preceding 680 krone ($104.81). According to reports, Kumar particularly expressed concern about compounded weight-loss drugs, a form of competition that has affected Novo Nordisk's otherwise lively Ozempic and Wegovy sales. The analyst wrote that although the U.S. Food and Drug Administration (FDA) has banned compounding, rivals continue to sell such drugs illegally. Kumar does not believe this situation will change much in the near future, so he believes current estimates for total GLP-1 drug sales might be overestimated. Reasons to be cheerful The HSBC pundit certainly raises valid concerns and questions, although the ultimate effect of the compounding ban on Novo Nordisk will depend on how effectively it's enforced; perhaps, in contrast to Kumar's view, the offending parties will be caught and punished. I wouldn't be as down on the Danish company as the analyst. That hot competition only proves how popular Wegovy and its ilk are at the moment, and in a vast country like the U.S. that has a clear problem with obesity, that should continue to motor its fundamentals higher. Should you invest $1,000 in Novo Nordisk right now? Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,098,838!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
20 hours ago
- Business
- Yahoo
Novo Nordisk (NVO) Extends Fall on 3rd Day as Pessimistic Outlook Lingers
We recently published . Novo Nordisk A/S (NYSE:NVO) is one of the best-performing stocks on Wednesday. Novo Nordisk extended its losing streak to a third straight day on Wednesday, dropping 7.25 percent to close at $50.03 apiece after earning a stock downgrade from Bank of America. In a market note, the investment firm said it downgraded Novo Nordisk A/S (NYSE:NVO) to 'neutral' from 'buy' previously and lowered its price target to 375 Danish kroner from 550 Danish kroner. Photo by ani-kolleshi on unsplash The revision followed the company's pessimistic outlook for the rest of the year which would pose a challenge for its new chief executive. In a statement earlier this week, Novo Nordisk A/S (NYSE:NVO) said it now expects full-year sales to grow between 8 and 14 percent, down from the 13 to 21 percent projected previously, as well as annual operating income growth to slow down at 10 to 16 percent as compared with the 16 to 24 percent prior. Novo Nordisk A/S (NYSE:NVO) said the new guidance was due to an expected weaker second half sales growth forecast for its blockbuster Wegovy and Ozempic drugs. 'For Wegovy in the US, the sales outlook reflects the persistent use of compounded GLP-1s, slower-than-expected market expansion, and competition,' Novo Nordisk A/S (NYSE:NVO). Meanwhile, the company welcomed company veteran Maziar Mike Doustdar as its new CEO, effective August 7, 2025. He will replace ousted CEO Lars Fruergaard Jørgensen. While we acknowledge the potential of NVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
GE Vernova hit with downgrades on its valuation after sharp rally
-- Mizuho and Guggenheim both downgraded shares of GE Vernova to Neutral given its stretched valuation following a roughly 90% rise this year. Though Mizuho raised its price target to $670 from $410, saying strong bookings in gas turbines and grid upgrades continue to drive earnings. But analysts at Mizuho believes much of the improvement is now reflected in the stock. The brokerage sees 2028 EBITDA reaching $10 billion, ahead of peers, but notes the stock trades at 16.7 times that estimate, slightly above industrial and AI-related peers. Guggenheim also downgraded the stock, saying even its above-consensus earnings forecasts no longer justify a Buy rating given the current price. While the firm still sees value over a longer time frame, it cited limited near-term upside and removed its $600 price target. 'Valuation is still admittedly attractive if investors are willing to focus on 2029 and beyond, but considering the wait required to get to that outcome, we no longer find GEV attractive from a risk/return standpoint,' analysts said Guggenheim said GE Vernova reported better-than-expected results for the second quarter and raised full-year guidance. Sales of aeroderivative turbines, used in data centers, accelerated during the quarter, while backlog growth suggests potential for production expansion beyond 2028. However, Mizuho said a formal announcement on capacity expansion is unlikely before late 2026. Related articles GE Vernova hit with downgrades on its valuation after sharp rally Analyst bullish on Texas Instruments on earnings lift as capex winds down Cisco upside now largely priced in, Evercore ISI downgrades stock Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Finland's Credit Rating Cut at Fitch as Debt Pile Keeps Growing
Finland suffered its first downgrade in almost a decade after Fitch Ratings cut the Nordic country's credit rating over its failure to rein in ballooning debt. Fitch late on Friday lowered Finland's long-term rating by one level to AA from AA+, the lowest credit grade among the top three rating companies, almost a year after it issued a negative outlook on the debt. Finland's rating at Fitch is now the third-highest, eight levels above junk.
