BMO Capital on Wednesday reaffirmed a Market Perform rating and a $57.00 price target on Novo Nordisk, the Danish pharmaceutical company with an approximate $213 billion market valuation. The stock currently trades at a price-to-earnings ratio of 12.82.
Although Novo Nordisk reported fourth-quarter results that surpassed consensus on both revenue and earnings by about 3%, BMO elected to maintain its neutral view. InvestingPro data cited by the analyst community indicates a wide band of price targets for the shares, ranging from $42.10 up to $74.51, and suggests the stock looks materially undervalued versus its Fair Value estimate.
BMO analyst Evan Seigerman highlighted that the company’s guidance for fiscal 2026 fell short of Street expectations. Management reported $48.6 billion in revenue over the last twelve months, but InvestingPro data referenced in available reports points to an anticipated revenue decline of 6% for fiscal year 2026.
Seigerman pointed to pricing concessions as a key factor pressuring the projected topline next year. The analyst wrote that Novo Nordisk is contending with "extensive pricing headwinds" in the U.S., citing the impact of Trump MFN deals and the firm’s efforts to preserve access in the obesity market as drivers of those concessions.
BMO noted early indications of demand for the company’s Wegovy oral pill, signaling potential upside in the emerging oral GLP-1 segment. However, the firm also said that concessions tied to injectable GLP-1 therapies are clearly weighing on revenue forecasts, offsetting some of the promise presented by oral formulations.
For the fourth quarter of 2025, Novo Nordisk reported adjusted earnings per share of $1.02, ahead of the $0.92 consensus estimate. Quarterly revenue came in at $12.53 billion, topping the expected $11.99 billion. Despite those beats, the stock moved lower in pre-market trading and closed at $48.18 in the reported session.
Available analyst reports cited no subsequent rating changes or updated forward-looking recommendations beyond BMO’s reiterated stance. These developments reflect a mix of solid near-term operating performance and lingering questions about pricing dynamics and revenue sustainability into 2026.
Context and market implications: The juxtaposition of a meaningful quarterly beat with below-expectation guidance illustrates the tension between product-level demand and price concessions. Investors and market participants will likely watch how pricing negotiations and access strategies in the U.S. play out, given their stated influence on fiscal 2026 revenue projections.