US-listed of shares Novo-Nordisk rebounded 4.1% in premarket trading after a 14% plunge over three trading days.

Novo Nordisk on Monday revealed weaker-than-expected data from a second late-stage trial of its obesity drug candidate CagriSema, knocking shares and stoking worries that rival Eli Lilly may be gaining an edge over the company in the weight-loss drugs market.

Investors and analysts have awaited the readout of Novo's REDEFINE 2 late-stage trial, hoping it would show that next-generation CagriSema was a more potent successor to Novo's blockbuster Wegovy for obesity and that its weight-loss potential was greater than that of Mounjaro, Lilly's rival to Wegovy.

On Thursday, Kepler Cheuvreux analyst David Evans upgraded Novo Nordisk stock from Hold to Buy, adjusting the price target to DKK630.00, down from the previous DKK715.00. The upgrade comes as the stock trades near its 52-week low of $73.80, with InvestingPro data showing a steep 45.41% decline over the past six months. Evans noted the significant decline in Novo Nordisk’s share price and market sentiment since mid-2024, highlighting that the stock had halved from its peak of over DKK1,000.

Evans explained that the firm had maintained a cautious stance on Novo Nordisk in the past, believing that the market’s enthusiasm, particularly regarding the company’s prospects in the obesity sector, was overly optimistic. The firm had concerns about potential competition and pricing risks that could impact the company’s performance. However, InvestingPro analysis indicates strong fundamentals, with an impressive 85% gross profit margin and a "GREAT" financial health score of 3.04 out of 5.