1. Novo Nordisk A/S (NYSE:NVO)
Stock Price as of March 21: $76.86
Average Upside Potential: ~62.9%
52-week Low: $71.63
Number of Hedge Fund Holders: 64
Novo Nordisk A/S (NYSE:NVO) is engaged in the research and development, manufacture, and distribution of pharmaceutical products. The company completed the acquisition of the 3 Catalent sites, and during FY 2024, it progressed its R&D pipeline, including obesity projects like CagriSema and amycretin. In 2025, Novo Nordisk A/S (NYSE:NVO) remains focused on commercial execution, the progression of its early and late-stage R&D pipeline, and the expansion of the production capacity. The company also plans to drive operational efficiencies throughout the value chain to enable investments in future growth assets. It believes that investments throughout the full manufacturing value chain are expected to increase patient reach towards 2030.
Novo Nordisk A/S (NYSE:NVO) remains optimistic about the closing of the acquisition of 3 fill-finish sites. This acquisition is expected to help expand capacity further and will help it reach more patients with current and future treatments. Furthermore, the acquisition can enable faster expansion of manufacturing capacity at scale while offering future optionality and flexibility. Overall, it will gradually increase Novo Nordisk A/S (NYSE:NVO)’s fill-finish capacity from 2026 and onward.
ClearBridge Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Similarly, we used a temporary price dislocation caused by disappointing clinical trial results to purchase shares of Novo Nordisk A/S (NYSE:NVO), a Danish-based leader in diabetes and obesity treatments. Novo’s Wegovy semaglutide drug was first to market among the new generation of obesity drugs; however, the company has lost market share to portfolio holding Eli Lilly due to delays in scaling up production volumes and superior weight loss results demonstrated by Lilly’s trizepatide drugs. While the initial market reaction to Novo’s more enhanced CagriSema weight loss treatment was negative, we believe this is a more potent formulation that can better compete with Lilly’s suite. With Novo poised to have a better product portfolio and improved supply position, we find the company’s valuation very attractive given the large secular growth trends behind the diabesity market.”
While we acknowledge the potential of NVO as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than NVO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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