Novo Nordisk's GLP-1 pill launch impresses but price erosion keeps Citi cautious with neutral rating.

Novo Nordisk reported strong first-quarter results, driven by a better-than-expected launch of its Wegovy GLP-1 pill. Citi raised its target price to DKK290, reflecting modest earnings upgrades for 2027-2031, but maintained a neutral rating due to concerns over price erosion and competitive pressures in the obesity market. Despite upbeat sales estimates for Wegovy, Citi expects continued margin compression and uncertainty in long-term pricing dynamics, keeping its 2027 earnings forecast below consensus. The cautious stance highlights risks amid promising product momentum.