Novo Nordisk A/S (NVO): A Bull Case Theory
We came across a bullish thesis on Novo Nordisk A/S on Kontra Investments' Substack by Kontra. In this article, we will summarize the bull's thesis on NVO. Novo Nordisk A/S's share was trading at $70.73 as of June 24th. NVO's trailing and forward P/E were 19.24 and 17.09, respectively, according to Yahoo Finance.
A picture of a pharma technician preparing an IV injection of a biopharmaceutical product.
Novo Nordisk continues to solidify its leadership in obesity treatment with groundbreaking clinical results and strategic clarity, reinforcing its position as a cornerstone healthcare investment. At the 2025 ADA Scientific Sessions, the company unveiled exceptional data from the REDEFINE 1 trial of its new combination therapy, CagriSema, which achieved a mean weight loss of 22.7% at 68 weeks.
Over 60% of patients lost more than 20% of their body weight, with 23% exceeding a 30% reduction—figures that set a new benchmark in obesity care. CagriSema's strong efficacy is coupled with a favorable safety profile, with only 6% of participants discontinuing treatment due to mostly mild gastrointestinal issues. Novo's innovation pipeline also features amycretin, a dual GLP-1 and amylin receptor agonist, showing promising early-stage data for sustained weight loss and further diversifying its leadership in metabolic health.
Financially, Novo Nordisk remains highly attractive, with revenues expected to grow from DKK 330 billion in 2025 to DKK 520 billion by 2029, alongside EBIT margins projected around 50%. Valuation metrics support the bullish case: its forward P/E is forecast to decline from 17x in 2025 to under 10x by 2029, and EV/EBITDA from 12.6x to 6.6x. Dividend yields are set to increase steadily, and free cash flow is projected to reach DKK 174 billion by 2029.
Novo Nordisk's disciplined capital allocation, strong innovation, and regulatory integrity highlight its potential for long-term outperformance. The company remains a premier name in global healthcare, offering both resilience and upside for investors seeking quality growth.
Previously, we covered a on Novo Nordisk A/S by Kontra Investments in May 2025, which highlighted its GLP-1 market dominance, strong Q1 results, and resilience against U.S. headwinds. The company's stock price has appreciated by approximately 4.4% since our coverage. The thesis still stands as Novo's pipeline and financial strength continue to support long-term growth. Kontra shares an identical view but emphasizes CagriSema's clinical data.
Novo Nordisk A/S is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held NVO at the end of the first quarter, which was 64 in the previous quarter. While we acknowledge the risk and potential of NVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None.
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