Novo Nordisk Braces for Critical Q3 Earnings Announcement NVO is set to release its third-quarter earnings on Wednesday. Analysts estimate an earnings per share (EPS) of 88 cents and revenue of $10.49 billion when the company posts its results after market hours.

The stock has appreciated 8.55% over the past year and has risen 7.45% year-to-date.

Let’s analyze Novo Nordisk’s stock performance and how it aligns with Wall Street’s expectations ahead of the earnings report.

Bearish Trends in Novo Nordisk Stock Ahead of Earnings

Pushing through the market, Novo Nordisk’s stock currently trades at $108.76, showing notable bearish momentum. The stock price rests below its five-, 20-, and 50-day exponential moving averages, indicating a potential for further declines amidst consistent selling pressure.

Chart created using Benzinga Pro

Having an eight-day simple moving average (SMA) at $111.67, a 20-day SMA at $115.16, and a 50-day SMA at $123.13 all positioned above the current price, technical analysis indicates a bearish outlook for NVO stock.

Moreover, the 200-day SMA, which stands at $128.29, reinforces this trend. The Moving Average Convergence Divergence (MACD) reading of negative 3.44 signals persistent downward momentum, while the Relative Strength Index (RSI) of 25.06 highlights oversold conditions. This scenario suggests NVO stock may continue to decline unless there is substantial buy-side support.

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Strategic Partnership for Advanced GLP-1 Treatments

In a strategic initiative to expand its product offerings, Novo Nordisk has entered into a $285 million deal with Denmark-based Ascendis Pharma AS ASND. This alliance gives Novo exclusive global rights to Ascendis’ TransCon technology, enabling the development of once-monthly GLP-1 receptor agonists targeted at Type 2 diabetes and obesity—enhancing its existing weekly GLP-1 treatments.

This partnership also extends into cardiovascular disease, allowing Novo the option to broaden its metabolic treatment portfolio. Ascendis will spearhead early-stage development, while Novo will manage regulatory, manufacturing, and commercialization processes.

The flagship product from this collaboration is a once-monthly GLP-1 drug, which could greatly benefit patients with metabolic disorders. Recent clinical trials conducted by Novo reflect the wider health benefits of its GLP-1 treatments, revealing reduced hospital admissions for heart disease among overweight patients—an encouraging sign for investor confidence regarding the new drug’s cardiovascular applications.

Analysts Forecast 46% Upside for Novo Nordisk

The consensus rating from analysts positions Novo Nordisk stock as a Buy, with an average price target of $123.86. Updates from BMO Capital and Cantor Fitzgerald suggest an average price target of $158.67, indicating a potential upside of 45.78%.

As Novo Nordisk approaches its third-quarter earnings report, the conflicting narratives surrounding bearish technical signals and optimistic analyst ratings, paired with an innovative new partnership, set the stage for an eagerly awaited earnings call.

Price Action: Novo Nordisk stock closed the trading day on Monday at $109.72, having decreased by 1.98%.

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