NVO trades at a forward P/E of 10 and P/S of 0.56 with a 69% ROE, while securing new FDA approvals (Wegovy HD) and operating in an $86B projected TAM. The market has overreacted to near-term headwinds (competition, guidance), creating a massive disconnect between the $37 share price and the company's intrinsic value (DCF $70-$97). Go long on NVO to capitalize on the extreme valuation mismatch, ongoing $15B buybacks, and upcoming catalysts like the AGM. Pricing pressure, Eli Lilly competition, FDA warning letters, and poor 2026 guidance.
NVO
HIGH
Mar 20, 11:43
Key Points
['Wegovy HD just received FDA approval.', 'Forward P/E of 10 with 69% Return on Equity.', '$15B share buyback program is actively running.', 'Bernstein initiated coverage with a $175 PT.', 'Stock has dropped from $142 to $37, de-risking entry.']
March 20, 2026 at 11:43