Novo Nordisk GLP-1 pill launch impresses but price erosion keeps Citi on the sidelines

Shares in Novo Nordisk (NYSE:NVO) drew a cautious reception from Citi following first-quarter results that beat consensus expectations, with the bank raising its target price but retaining a neutral rating as concerns over portfolio price erosion and long-term obesity market competition outweigh a stronger-than-expected launch of the Wegovy pill. Citi lifted its target price to DKK290 in line with modest earnings upgrades of 2-3% for financial years 2027 to 2031, driven primarily by higher Wegovy pill estimates, while leaving its 2026 earnings per share forecast unchanged after cutting its sales estimate by 4% and operating income by 7% in constant currency.