Novo Nordisk Is Now A Better Value Play Than Eli Lilly With Solid Upside

Sophos Research
116 Followers

Summary

  • Novo Nordisk is misunderstood by the market, creating a rare asymmetric value opportunity despite short-term headline pressures and a CEO transition.
  • The company's dominant 62% global GLP-1 market share, manufacturing scale, and expanding international footprint underpin resilient double-digit growth.
  • Valuation is irrationally compressed at 4.9x P/S vs. Eli Lilly's 14x, despite Novo's superior revenues and operational advantages.
  • I see 100%+ upside as the market normalizes NVO's multiple, with catalysts like Medicare/Medicaid access and oral GLP-1 expansion ahead.

Selection of weight loss drugs

Douglas Cliff

Novo Nordisk (NVO) is being misread by the market, and that misreading has created one of the most asymmetric value opportunities in the healthcare sector today.

In my opinion, recent headlines have focused on short-term pressures, including a temporary

This article was written by

116 Followers
I’m Laura Bennett, the writer behind Sophos Research. I started my career as a software engineer at Amazon, where I spent over five years working on large-scale distributed systems and backend architecture. My background is deeply technical, and over the years, my writing on software infrastructure, AI systems, and cloud technologies has been featured in outlets like TechCrunch and other leading tech publications. In 2021, I developed a strong interest in the financial markets particularly the intersection of software, infrastructure, and capital allocation. I began studying financial reports the same way I would debug a complex system looking for patterns, understanding structure, and identifying the weak points others might overlook. Today, I work at a small tech firm that builds algorithmic trading platforms and low-latency infrastructure for institutional clients and hedge funds. That experience gives me a view into how markets function beneath the surface from data pipelines and execution engines to portfolio risk models. On Seeking Alpha, I focus on analyzing tech companies through a technical and fundamental lens. I write about enterprise software, cloud infrastructure, AI platforms, and the trading technology that powers modern finance.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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