10 Jul

Performance of Novo Nordisk Stock in 2Q17

WRITTEN BY Mike Benson

A look at Novo Nordisk

Novo Nordisk (NVO) is a global pharmaceutical company dealing with discovery, development, manufacturing, and commercialization of pharmaceutical products. The business is segregated into two business segments:

  • diabetes and obesity care
  • biopharmaceuticals

Performance of Novo Nordisk Stock in 2Q17

Stock price performance

Novo Nordisk (NVO) stock has risen ~18.6% in 2Q17. It has risen ~16.9% year-to-date as of July 7, 2017.

Analyst recommendations

Wall Street analysts estimate that Novo Nordisk (NV)) stock will fall ~12.5% over the next 12 months. Analyst recommendations show a 12-month target price of $36.70 per share compared to the last price of $41.94 on July 6, 2017.

There are 32 analysts tracking Novo Nordisk stock. Of those, 12 are recommending a “buy,” 13 are recommending a “hold,” and seven are recommending a “sell.” The consensus rating for Novo Nordisk stands at 2.8, which represents a “moderate buy” for value investors.

Analysts’ revenue estimates

Novo Nordisk’s revenues are mainly driven by the strong performance of its diabetes care business.

Wall Street analyst estimates show revenues of 28.5 billion Danish kroner in 2Q17, which is a 3.7% rise compared to 2Q16, and EPS (earnings per share) of 3.8 Danish kroner for the quarter.

To divest the company-specific risks, you can consider the Vanguard FTSE All-World ex-US ETF (VEU), which holds 0.50% of its total assets in Novo Nordisk. VEU also holds 1.2% in Novartis (NVS), 0.50% in AstraZeneca (AZN), and 0.30% in Valeant Pharmaceuticals International (VRX).

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