the part of Novo Nordisk (WKN: A1XA8R) was trading above EUR100 at the end of last week. If we look at the closing prices of the DAX, we see a share price of EUR 100.76. The Danish company and specialist in pharmaceutical products has once again reached a triple-digit price.
Another question is whether Novo Nordisk can defend this mark of more than 100 euros. So far this has not been successful. But at least the next week could be special. However: The medium-term outlook remains what should determine the share price.
Novo Nordisk: Securing dividend quickly?
In any case, next week could be positive again for the Novo Nordisk stock. Investors who still want to secure this dividend quality should now act spontaneously. This year’s Annual General Meeting will take place on March 24 this year. As a result, another interim dividend is likely to be paid, which management is known to pay investors twice a year.
However, these values are comparatively low. Is there enough interest? At a total of 10.40 Danish kroner, the equivalent of around 1.40 euros for the whole year (!), there would currently be a dividend yield of almost 1.4%. However, this is likely to be the last chance for a dividend until August.
Novo Nordisk is also benefiting from a more positive overall market and the fact that investors are willing to pay more for growth again. The share buyback should also be a support, which will be decided at the next general meeting. Therefore, capital repatriations can be a short-term investment thesis. Like I said: next week is definitely going to be exciting here.
The rating at a glance
However, Novo Nordisk stock is sometimes still not priced cheaply. At the current share price of DKK 714.60, the price/earnings ratio is an ambitious 34.7. It’s not cheap, to be sure, and it should at least price in higher single-digit earnings growth over several years. Maybe even another double-digit growth in earnings per share.
For me, there is still a lot of optimism in the Novo Nordisk stock at a price per share of more than 100 euros. In the medium to long term, the Danish pharmaceutical company can probably justify this with strong resources like Ozempic or Rybelsus. But is the current valuation at a price level above 100 euros a good invitation for a first entry?
I’m inclined to say that waiting for a discount might be more appropriate. Around 80 euros as in January would be a more ideal entry level for me. Personally, I wouldn’t risk the big investment even then, but it would leave room for a possible sale based on the rating. Like I said, I see a lot of discounted growth right now.
The article Can Novo Nordisk defend the €100 mark now? first appeared in The Motley Fool Germany.
Vincent owns shares in Novo Nordisk. The Motley Fool recommends Novo Nordisk.
Motley Fool Germany 2022