TD Cowen Downgrades Novo Nordisk to Hold, Cuts Target to $42
TD Cowen cut Novo Nordisk to Hold from Buy and trimmed its price target to $42, citing underwhelming CagriSema results delivering 23% weight loss versus Lilly’s 25.5% and lagging Ozempic prescriptions. Management forecasted a 5–13% decline in 2026 adjusted sales growth due to pricing pressures and competition.
1. Analyst Downgrade Details
TD Cowen lowered its rating on Novo Nordisk from Buy to Hold and cut the price target to $42, citing increased uncertainty around product momentum and valuation. The downgrade joins a series of recalibrations by peers, leaving the consensus target trending downward.
2. CagriSema Trial Disappointment
The CagriSema obesity drug delivered a 23% average body weight reduction over 84 weeks, missing Lilly’s 25.5% and failing non-inferiority benchmarks. Additional concerns include slower Ozempic prescription growth and emerging questions on the Wegovy oral formulation’s uptake.
3. 2026 Sales Guidance Impact
Management projected adjusted sales growth to decline 5–13% in 2026 at constant exchange rates, driven by pricing pressures, increased competition and potential reimbursement headwinds. This outlook contrasts with Q4 2025 revenue of $45.32 billion and 31% obesity care sales growth, underscoring concerns about future momentum.