Morgan Stanley Downgrades Novo Nordisk A/S (NVO) from Equal-Weight to Underweight

With significant revenue and dividend growth, Novo Nordisk A/S (NYSE:NVO) makes our list of the 20 Best Stocks to Buy and Hold for a Lifetime.

Morgan Stanley downgraded Novo Nordisk A/S (NYSE:NVO) from Equal-Weight to Underweight on September 29, 2025, and dropped its price target from $53.20 to $42. The analyst cited a “tough path ahead” due to pricing pressures, escalating competition, and slowing U.S. prescription patterns. In premarket trade, shares dropped more than 3%.

Wegovy, Ozempic, and Rybelsus weekly volume stagnation was noted by analysts, along with heightened competition from Eli Lilly’s Mounjaro, tirzepatide, and forthcoming oral and generic GLP-1 substitutes in foreign markets. There are still issues with pricing and positioning, even though Novo Nordisk A/S (NYSE:NVO)’s oral Wegovy launch in 2026 might generate $1 billion in sales.

Morgan Stanley projects a 5% increase in group sales in 2026, which is less than the 8.5% consensus. The company also warns that impending trial findings, Medicare Part D pricing, and patent expirations might compress valuation multiples, indicating short-term challenges for Novo Nordisk A/S (NYSE:NVO)’s expansion and stock performance.

With a focus on diabetes and obesity care as well as treatments for rare diseases, Novo Nordisk A/S (NYSE:NVO) conducts research, develops, manufactures, and sells pharmaceutical products worldwide. It is one of the best stocks to buy.

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