Wall Street Pulls Back on Novo Nordisk and Jefferies While Talkspace Heads for Exit

"The CagriSema results were the sharpest blow - the drug delivered 23% average body weight reduction in an 84-week trial, falling short of Eli Lilly's tirzepatide at 25.5% and failing to prove non-inferiority. Goldman Sachs had already moved to Neutral in early March with a $41 target, and Deutsche Bank downgraded to Hold in late February as well."

"TD Cowen downgraded Novo Nordisk to Hold from Buy and cut its price target to $42 from $45. The rationale centers on a cluster of concerns that have been building for weeks: ongoing questions around the Wegovy pill, underwhelming CagriSema clinical data, lagging Ozempic prescriptions, and additional caution flagged at a recent healthcare conference."

"Truist kept its Buy rating on Korn Ferry but cut the price target to $75 from $88, citing lower industry multiples. The underlying business is holding up: executive search demand grew 11% on a constant-currency basis, and the segment remains more resilient than other human capital management areas."

TD Cowen downgraded Novo Nordisk to Hold from Buy, citing concerns over Wegovy pill development, underwhelming CagriSema clinical data showing only 23% body weight reduction versus Eli Lilly's superior 25.5%, and lagging Ozempic prescriptions. Truist maintained its Buy rating on Korn Ferry but reduced the price target due to lower industry multiples, though the underlying business remains resilient with 11% executive search demand growth. Morgan Stanley downgraded Jefferies Financial Group from Overweight to Equal Weight, driven by credit concerns and implying 28% upside potential. KeyBanc effectively closed coverage on Talkspace following its acquisition announcement. These moves reflect a broader pattern of valuation recalibration and pipeline disappointment across healthcare and financial services sectors.

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