Morgan Stanley and Bank of America downgrade Novo Nordisk and DNB Bank

Morgan Stanley has downgraded Novo Nordisk to ‘Underweight’, maintaining a price target of 250 DKK. The decision follows concerns regarding mid-term growth prospects and the upcoming patent expiration for semaglutide in the early 2030s. Analysts noted that approximately three-quarters of the company's revenue is expected to stem from semaglutide by 2026, creating a significant dependency.

Separately, Bank of America has downgraded DNB Bank ASA to ‘Underperform’, lowering its price target from 324 NOK to 298 NOK. The downgrade is attributed to intense competition in Norway, pressure on net interest margins, and losses in market share.