Why Novo Nordisk Stock Was Tumbling on Thursday
Novo Nordisk (NYSE: NVO) might have one of the hottest products on pharmacy shelves right now, but its stock went cold on Thursday. Following a downbeat note from an analyst tracking the company, its share price was nearly 4% down in late-session trading. The gloomy S&P 500 index, meanwhile, was only 1.4% underwater at the time.
The author of the note was Jefferies' Peter Welford, who reiterated his underperform (read: sell) recommendation on Novo Nordisk shares. He also maintained his price target of 425 Danish Kroner ($60.94) per share on the European pharmaceutical company.
It wasn't immediately apparent why the Jefferies analyst felt the need to reiterate his Novo Nordisk take. It doesn't seem coincidental, though, that it came a day after a negative headline about the company. Reuters published an article, based on a Food and Drug Administration (FDA) report it had obtained, stating that an inspection by the regulator found a number of deficiencies at a company production plant in North Carolina.
Source Fool.com
