Novozymes (CPSE:NSIS B) Is Up 11.4% After Raising 2025 Sales Growth Outlook and Reporting Strong YTD Results

• Novozymes recently raised its full-year 2025 earnings guidance, now projecting organic sales growth of 7-8%, and announced third-quarter results showing sales of €1.06 billion and nine-month net income of €460.8 million.
• While third-quarter net income was lower than the previous year, the company’s nine-month net income more than doubled, reflecting strong year-to-date performance and the impact of favorable sales timing.
• With the updated earnings forecast, we'll explore how increased guidance for organic sales growth shapes Novozymes' investment narrative.

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What Is Novozymes' Investment Narrative?

Owning Novozymes is all about believing in the company’s ability to deliver consistent growth from its biosolutions platform, despite premium valuation and sector pressures. The latest guidance upgrade, projecting up to 8% organic sales growth for 2025 (and even 9% when country exits are excluded), gives fresh momentum to the short-term story, supporting optimism around year-end catalysts such as continued product rollouts and partnerships, plus the company’s capacity to offset temporary headwinds like sales timing shifts. While the upgraded sales outlook leans positive, bigger-picture risks linger, particularly around board inexperience, a high price-to-earnings ratio compared to peers, and a recent “one-off” loss on the books. If investors focus on profit quality and governance issues, the impact of these may become more central following this earnings update.

But not everyone will overlook those board and profit concerns. Novozymes' shares have been on the rise but are still potentially undervalued by 42%. Find out what it's worth.

Exploring Other Perspectives

Across two private investor estimates in the Simply Wall St Community, fair valuations for Novozymes stretch from €468,286 to an impressive €729,305. If you’re weighing risks around premium pricing or recent “one-off” results, these divergent community perspectives highlight just how differently future company performance could be viewed. Explore how your view fits within this wide range of market opinions.

Explore 2 other fair value estimates on Novozymes - why the stock might be worth as much as 71% more than the current price!

Build Your Own Novozymes Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Novozymes research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Novozymes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Novozymes' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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