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Has MM considered Novo Nordisk (NVO US)?

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Has MM considered Novo Nordisk (NVO US)?

Hi James Engaged in discovery, development, manufacturing and marketing of pharmaceutical products, NVO has two business segments - diabetes care and biopharmaceuticals. Of particular interest is the growth NVO's diabetes and obesity products in the USA. Is this a stock you have considered for the international portfolio?

Answer

Hi Steve,

It is a stock that has come across my radar but unfortunately we have not invested. We scan for large cap growth in the US and NVO US has very good sales & earnings momentum this year which is driving a strong re-rate higher in the share price.

Overnight (13th April) they upgraded again, Citi who has a buy on the stock I think summed up the news the best…. the new guidance is “pretty awesome” and it is “impressed” by the growth Novo is delivering, albeit this was widely anticipated. The group is still offering “materially” better growth and returns than pharma industry peers and earnings visibility beyond 2035.

While clearly a great result and strong trend in the stock, the risk/reward looks a lot better into ~10% pullbacks, which happen fairly regularly, particularly after widely anticipated good news has been delivered, the next catalyst can be some way off.

 

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Novo Nordisk (NVO US)
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