The share price rally that has catapulted Novo Nordisk to the top of Europe’s stocks in terms of market capitalization is set to stall in 2024 as the hype surrounding the company’s weight loss drug begins to fade due to competitive pressures and supply challenges, say analysts at Jefferies according to Bloomberg News.

The Ozempic and Wegovy maker has become Europe’s most valuable listed company this year, with shares up 42% so far in 2023.

But competition is heating up with the launch of Eli Lilly’s rival weight loss drug Zepbound, which is now available in US pharmacies.

”Over the coming year, we imagine sentiment will change,” writes Jefferies analyst Peter Welford in a note that names Novo Nordisk as one of the four stocks that the financial house believes will underperform in 2024.

The analyst sees few important catalysts for Novo Nordisk over the next 12 months, and he believes that a perfect development has already been factored into the pipeline.

Welford has had a negative ’underperform’ recommendation for the Novo Nordisk share for four years, and the price target is DKK 430, roughly 35% below Friday’s price of DKK 667.30, which follows a plus of 0.2% on the day.