Novo Nordisk Stock Surges On Weight Loss Drug Data and Analysts Say It's Still a Buy
Novo Nordisk stock is paring its year-over-year deficit on positive early stage trial results for the company's new weight loss drug. Here's what you need to know.


Novo Nordisk (NVO) stock is soaring Friday after the Danish pharmaceutical company reported positive early stage results for its once-weekly weight loss drug Amycretin.
The topline results from the Phase 1b/2a clinical trial showed that patients treated with Amycretin achieved a body weight loss of 9.7% in 20 weeks on 1.25 milligrams, 16.2% in 28 weeks on 5 milligrams and 22% in 36 weeks on 20 milligrams of the drug. Meanwhile, patients treated with the placebo experienced weight gains of 1.9%, 2.3% and 2%, respectively.
"We are very encouraged by the subcutaneous Phase 1b/2a results for Amycretin in people living with overweight or obesity," said Martin Lange, executive vice president for Development at Novo Nordisk. "The results seen in the trial support the weight lowering potential of this novel unimolecular GLP-1 and amylin receptor agonist, Amycretin, that we have previously seen with the oral formulation."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Based on the positive results, Novo Nordisk said it is now planning further clinical development of the drug.
Is Novo Nordisk stock a buy, sell or hold?
Novo Nordisk has underperformed the broad market on the price charts over the past 12 months, down 17% vs the S&P 500's 27% gain. But Wall Street remains bullish on the healthcare stock.
According to S&P Global Market Intelligence, the average analyst target price for NVO stock is $113.44, representing implied upside of more than 30% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Argus Research is one of those firms with a Buy rating on NVO stock, along with a $110 price target.
"The company is working with regulators on new indications for its GLP-1 treatments and is also focused on launching new products," wrote Argus Research analyst Jasper Hellweg in a January 16 note. "On the fundamentals, the shares trade at 22 times our 2025 earnings-per-share estimate, well below the stock's five-year historical average of 31. Given the company's strong track record and growth outlook, we believe that a higher multiple is warranted."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?
Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
By Kelley R. Taylor
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
By Todd Talbot, CFP®, NSSA, CTS™
-
Serious Medical Diagnosis? Four Financial Steps to Take
A serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
By Thomas C. West, CLU®, ChFC®, AIF®
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
When to Sell Your Stock
Knowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
By Charles Lewis Sizemore, CFA
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®