© Reuters. Novo Nordisk (NVO) outsized development ‘more likely to proceed to exceed Road expectations’ – Cantor Fitzgerald
Analysts at Cantor Fitzgerald initiated Novo Nordisk (NYSE:) with an Obese ranking and a $120 per share value goal in a observe Friday.
The analysts informed buyers that “the party is just getting started” for the corporate.
“We see the runway for obesity remaining attractive for years to come. It is already annualizing sales at >$10B, and we estimate this could grow to $100B over the next 5-7 years (~40%-60% CAGR),” the analysts wrote.
“NVO should be an outsized beneficiary of this trend, given its leadership in what is currently a duopoly with LLY (OW),” they added. “Although there are many potential new competitors coming, NVO has much more data, established commercial infrastructure, and manufacturing capacity, making it hard for new players to catch up.”
The analysts famous that some buyers their agency has spoken to love the lengthy LLY and brief NVO commerce. Nevertheless, they “don’t think shorting NVO is the right call because its outsized growth is likely to continue to exceed Street expectations, especially as manufacturing capacity increases.”
