Novo Nordisk Stock Analysis: Is Europe’s Healthcare Giant a Long-Term Buy Amid 2025 Market Volatility?

Novo Nordisk – 2024 Summary

• Strong Financial Performance:
  • Global sales and operating profit grew 26% (constant exchange rates).
  • Reached 45.2 million people with serious chronic diseases.
  • Achieved 63% global market share in the GLP-1 segment.
• Significant Investment in Capacity & Supply Chain:
  • Over DKK 129 billion invested in 2024 to expand manufacturing.
  • Acquired three fill-finish sites from Catalent Inc.
  • Expanded facilities in Denmark, France, Brazil, China, and the US.
• Product Portfolio Optimisation:
  • Phasing out older insulin products to free capacity.
  • Commitment to ensuring continued access for existing patients.
• R&D and Pipeline Highlights:
  • Continued development of GLP-1-based therapies: Ozempic®, Wegovy®, Rybelsus®.
  • CagriSema (obesity/T2D) showed 22.7% weight loss in Phase 3 trial.
  • Amycretin (Phase 1b/2a) showed 22.0% weight loss with 20mg dose.
  • Launched Awiqli®, the world’s first once-weekly basal insulin.
  • Preparing regulatory submission for Mim8 for haemophilia A.
• Sustainability & Environmental Action:
  • Introduced updated sustainability roadmaps:
    • Cut emissions, reduce plastic footprint, and protect biodiversity.
    • Promoting reusable injection devices and low-carbon materials.
• Workforce & Organisational Growth:
  • Workforce grew 20% to 77,349 employees in 2024.
  • Focused on integration, diversity, and alignment with the Novo Nordisk Way.
• Strategic Outlook:
  • Strong foundation from long-term ownership via Novo Nordisk Foundation.
  • Commitment to innovation, access to care, and sustainable growth.
  • Preparing to meet rising demand amidst a complex global environment.

Technical Analysis

Novo Nordisk, Europe’s largest healthcare company, has seen its stock price decline sharply, currently down over 50% from all-time highs. As of now, the company’s ADR (American Depositary Receipt) listed on the NYSE is trading at approximately $67.68 per share, with a year-to-date decline of 23% in 2025.

Technical Analysis: Is There More Downside Ahead for Novo Nordisk?

A closer look at the monthly stock chart reveals several key indicators that long-term investors should consider:

• The MACD (Moving Average Convergence Divergence) indicator, a measure of momentum, continues to signal potential weakness. The price is gradually approaching the 200-day moving average (200MA) — currently at $52.55 — which could act as a crucial support level. A further drop to this level would represent an additional 23% decline from today’s price.

• The RSI (Relative Strength Index) is currently reading 35, marking its lowest point since March 2017. Despite this, Novo Nordisk has significantly expanded across all business operations since then. Historically, RSI levels have dropped even lower (e.g. 2014, 2016), so a cautious approach remains advisable.

Macroeconomic Factors Pressuring the Stock Market

Global stock markets, especially US-listed shares, are under pressure amid new tariffs rolling out worldwide and continued geopolitical tensions. This uncertainty is contributing to broader investor caution, especially for foreign companies trading on US exchanges like Novo Nordisk.

Wall Street Ratings & Stock Price Forecasts

According to TipRanks, 10 Wall Street analysts have issued ratings on Novo Nordisk:

• 5 analysts recommend a Buy

• 5 analysts rate it as a Hold

The average 12-month price target is $102, with a low-end target of $90. This implies a potential upside of 32% to 50% from the current price level.

Valuation: Is Novo Nordisk Undervalued Right Now?

• Current P/E Ratio: 20.72

• Forward P/E Ratio: 14.25

Given its robust earnings projections, Novo Nordisk may offer attractive value for long-term investors at these levels.

Investment Strategy: Dollar-Cost Averaging Could Be Key

While market conditions remain volatile, long-term investors may consider a dollar-cost averaging strategy to gradually build a position in Novo Nordisk. This approach can help mitigate risk and take advantage of potential future growth as the company continues to lead in the global healthcare space.

(Sources: novonordisk.com)