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Morgan Stanley downgrades Novo Nordisk with $40 price target, citing earnings and revenue declines.

Analyst Insights
11 Sep 2026
Alex Lavoie
View Source
Bearish
Morgan Stanley downgrades Novo Nordisk with $40 price target, citing earnings and revenue declines.

Morgan Stanley downgraded Novo Nordisk to "Underweight" with a price target of $40, implying a 9.11% downside from its recent price of $44.01. The downgrade reflects concerns over a projected 21.57% drop in earnings per share to $0.80 and a 2.35% revenue decline to $11.47 billion. Despite these challenges, Novo Nordisk's weight-loss drug Wegovy received approval in China, offering some positive outlook amid competitive and regulatory risks in the GLP-1 market. The stock has underperformed recently, losing 3.94% over the past month, signaling cautious investor sentiment ahead of upcoming earnings.

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