Share price recommendations
Novo Nordisk (NVO) will release earnings for 2Q16 on August 5. A Bloomberg survey of two brokerage houses from July 28, 2016, had 50% “buy” ratings on Novo and 50% “hold” recommendations for the stock. Although the number of analysts who are bullish on the stock has increased from 33.3% in May after its 1Q16 earnings to current levels, its consensus target price remains unchanged.
The consensus 12-month target price for Novo is $60.1, which translates to a ~7.7% return compared to its closing price of $55.79 on July 27, 2016.
What do analysts suggest for Novo’s peers?
As per a Bloomberg survey of 26 analysts on July 28, 2016, 69.2% of analysts issued a “buy” rating for Eli Lilly (LLY), while 30.8% rated the stock as a “hold.” With a consensus price of $96.65, Eli Lilly presents an opportunity to earn 17.7% over a one-year period.
According to the ratings of 24 analysts in a Bloomberg consensus dated July 28, 2016, 41.7% recommended a “buy” for Merck & Co (MRK), whereas 58.3% suggested a “hold.” Merck’s consensus price of $61.94 presents the upward potential of 6.1% over a 12-month period.
A Bloomberg consensus of five analysts on July 28, 2016, indicated that 60% issued a “buy” rating for Sanofi (SNY), and 40% recommended a “hold.” Sanofi presents an opportunity to earn 18% given a consensus target price of $49.67. Any direct investment in equities is highly risky. The Pharmaceutical ETF (PPH) has 4.8% of its total holdings in Novo Nordisk. Continue to the next part to understand the growth expectations for Novo in 2Q16.