Trade view /
24 August 2016 at 11:54 GMT
As mentioned in our morning call
Novo Nordisk shares are down 15% since the disappointing Q2 earnings report that contained a cut to forecasts. However, beneath all the data points the China story is growing stronger every quarter. In Q2 it was even more gratifying to see Novo Nordisk gaining market share in China and beating its peers by a wide margin. We believe China and other markets will offset temporary weakness in North America driven by pricing pressures and that investors will buy into the declines acknowledging that Novo Nordisk is still one of the most interesting growth stories in Europe.
In addition, the company has a very robust business model and very high return on capital. The free cash flow yield given high sales growth and robust operating income is very attractive. We are implementing our long Novo Nordisk with a stop loss at 302 and take profit limit at 350.Novo Nordisk weekly share price the past five years:
Novo Nordisk B share, NOVOb:xcse
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