Bank of America lifted its target price on Novo Nordisk’s (NVO) Denmark-listed shares to DKK 1,150 from the previous DKK 1,025.
The upward revision comes as analysts at Bank of America anticipate earnings per share (EPS) increase for the fiscal year 2024 and a projected compound annual growth rate (CAGR) in sales of about 14% between 2025 and 2030.
Specifically, the firm forecasts that Novo Nordisk (NYSE:NVO)'s EPS for 2024 and 2025 will exceed the consensus by 5% and approximately 15%, respectively. The bullish prediction is supported by the likelihood of a raised fiscal year 2024 guidance to at least the higher end of the current range.
The predictions include a 29% reported sales growth and a 34% EBIT growth for 2024, outpacing both the company's guidance and consensus estimates.
The investment bank also expects significant pipeline data releases over the next 12 to 18 months that “could see a 30% share price upside” for Novo.
Key developments include phase III trial results for CagriSema in obesity and diabetes, semaglutide in Alzheimer’s, and oral obesity treatments.
Furthermore, the company's cardiovascular pipeline assets such as Ziltivekimab and Ocedurenone are expected to report phase III results by late 2025 or early 2026, and could also make an impact on the stock.