Novo Nordisk Stock Jumps on Upgrade to 'Buy'

The equity is "oversold" and boasts affordably priced premiums

Jake Scott

Deputy Editor

Jan 8, 2025 at 9:08 AM

U.S.-listed shares of Danish pharmaceutical giant Novo Nordisk A/S (NYSE:NVO) are up 3.5% premarket, following a bull note from UBS. The analyst in question upgraded NVO to "buy" from "neutral," citing strong demand for GLP-1 medications and calling it "the most exciting growth story in European pharma."

Novo Nordisk stock has erased 40.7% over the last six months, worsened by a nearly 20% bear gap back in late December following an update on the company's weight loss drug CagriSema. Now "oversold," NVO's 14-day relative strength index (RSI) ranks at 15.4, signaling potential rebound opportunities.

Options may be an attractive choice for those eyeing the security, per its Schaeffer's Volatility Index (SVI) of 33% that sits in the 11th percentile of its annual range. This suggests options traders now anticipate lower-than-usual volatility expectations.

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