20 Oct

Novo Nordisk Stock: Performance in 3Q17

WRITTEN BY Mike Benson

A look at Novo Nordisk

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

  • diabetes and obesity care
  • biopharmaceuticals

Novo Nordisk Stock: Performance in 3Q17

The above chart shows revenues and EPS (earnings per share) over the last eight quarters and estimates for 3Q17.

Stock performance

Novo Nordisk stock has risen ~12.3% in 3Q17. It has risen ~41.3% year-to-date as of October 20, 2017.

Analyst recommendations

Wall Street analysts estimate that the stock will fall marginally by ~0.90% over the next 12 months. Analyst recommendations show a 12-month target price of $50.20 per share compared to the last price of $50.68 per share on October 19, 2017.

There is only one analyst tracking Novo Nordisk ADR (American depositary receipts). That analyst is recommending a “hold.” There are 31 analysts tracking Novo Nordisk stock. Thirteen of them recommend a “buy,” 13 recommend a “hold,” and five recommend a “sell.” The consensus rating for Novo Nordisk stands at 2.68, 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 analysts estimate revenues of 27.4 billion Danish kroner in 3Q17, which is a marginal fall of 0.40% compared to 3Q16. They expect EPS of 3.79 Danish kroner for 3Q17.

To divest the company-specific risks, investors can consider ETFs such as the Vanguard FTSE All-World ex-US ETF (VEU), which holds 0.40% of its total assets in Novo Nordisk (NVO). VEU also holds 0.40% in AstraZeneca (AZN), 0.50% in GlaxoSmithKline (GSK), and 0.50% in Sanofi (SNY).

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