Deutsche Bank downgraded Novo Nordisk to Sell from Hold on Thursday, citing a revised revenue outlook and persistent growth concerns. The bank reduced its price target by 9% to 265 Danish crowns from 290 crowns, reflecting what it described as high-single-digit mid-term revenue reductions.
The downgrade follows Novo Nordisk’s early earnings update earlier this month, which raised full-year profit and sales guidance to a range of zero to minus 6% at constant exchange rates versus 2025. This compares with a prior outlook of minus 12% to minus 4%, though the company noted uncertainty remains ahead of its Capital Markets Day scheduled for September 21.
Novo Nordisk’s second-quarter performance included pill sales for Wegovy at 3.22 billion Danish crowns, slightly below the 3.3 billion crowns anticipated by analysts. The drug remains a key driver of the company’s growth trajectory, though Deutsche Bank highlighted headwinds including the shelving of the ziltivekimab program and limited Medicare prescription growth.
Analyst Emmanuel Papadakis emphasized concerns over a potential return to growth in 2027 and what he termed a "large cliff problem" further out. The downgrade marks the second ratings cut from Deutsche Bank this year, following a February reduction to Hold after a trial data miss.
Novo Nordisk shares fell more than 3% in Copenhagen trading on Thursday, reflecting investor reaction to the downgrade and the mixed earnings outlook.
