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Concerns over Novo Nordisk’s growth path is leading Bank of America to step to the sidelines. The bank downgraded the Danish pharmaceutical giant to neutral from buy and decreased its price target to $60. That updated target still implies more than 11% upside from Tuesday’s close. “We have a Neutral rating on Novo Nordisk given c7% 2026- 31E sales CAGR with Wegovy and Ozempic trends looking tougher in 2H25 with further pressures into FY26-27 including Canada semaglutide [loss of exclusivity] and [Inflation Reduction Act] impacts,” analyst Sachin Jain wrote in a Wednesday note. NVO mountain 2025-07-28 NVO, week-to-date The downgrade comes on the heels of U.S.-listed shares plunging nearly 22% during Tuesday’s session after the company slashed its full-year forecast , citing weaker growth expectations in the second half of the year for its blockbuster obesity drug Wegovy. It said in a statement that this “reflects the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition.” Jain noted the lack of clarity surrounding the timeline for resolving the compounding as the main headwind. Additionally, the analyst pointed to Ozempic only returning low-single-digit-percentage growth, noting a “tougher” second-half outlook for the drug as well as the possibility of pricing cuts ahead. “For Ozempic, Canada patent expiry in FY26E not yet reflected in [consensus], as well as unknown impact for potential U.S. importation from Canada. In addition, risk from IRA pricing given the U.S. admin’s continued effort to lower drug prices in the U.S. to be communicated 2H25,” the analyst wrote. More than half of Wall Street is still bullish on the name, however, with nine out of 16 total analysts covering it having a strong buy or buy rating, per LSEG data. The stock has also come under significant pressure this year, falling more than 37%.
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