Novo Nordisk outsized growth ‘likely to continue to exceed Street expectations’ – Cantor Fitzgerald

Analysts at Cantor Fitzgerald initiated Novo Nordisk (NYSE:) with an Overweight rating and a $120 per share price target in a note Friday.

The analysts told investors that “the party is just getting started” for the company.

“We see the runway for obesity remaining attractive for years to come. It is already annualizing sales at >$10B, and we estimate this could grow to $100B over the next 5-7 years (~40%-60% CAGR),” the analysts wrote.

“NVO should be an outsized beneficiary of this trend, given its leadership in what is currently a duopoly with LLY (OW),” they added. “Although there are many potential new competitors coming, NVO has much more data, established commercial infrastructure, and manufacturing capacity, making it hard for new players to catch up.”

The analysts noted that some investors their firm has spoken to like the long LLY and short NVO trade. However, they “don’t think shorting NVO is the right call because its outsized growth is likely to continue to exceed Street expectations, especially as manufacturing capacity increases.”