Novo Nordisk Stock Rises as UBS Upgrades Ozempic Maker, Calls Sell-Off ‘Overdone’ [Video]

Novo Nordisk’s (NVO) U.S.-listed and domestic shares rose Wednesday after analysts from UBS Research upgraded the Danish drugmaker’s stock to “buy” from “neutral,” calling the recent sell-off of the stock “overdone.”

UBS analysts upgraded the stock but lowered their price target for the company’s domestic shares, listed in Copenhagen, to 750 Danish kroner ($103.55) from 1,100 kroner. The stock closed at 619.50 kroner at home Wednesday, about 40% below its June 25, 2024, record close of 1,028 kroner.

The UBS analysts said that decline provides “an attractive entry point,” as they expect the weight- loss drug market to pick up in the first quarter of this year. Novo Nordisk is a leader in that market with its Ozempic and Wegovy drugs, along with its main competitor, Eli Lilly (LLY), and its Mounjaro and Zepbound.

Shares of Novo Nordisk fell nearly 18% in one day last monthafter results of a trial for …