Shares of Novo Nordisk A/S (NVO) plummeted 5.02% in intraday trading on Thursday, following a significant downgrade from HSBC. The global banking giant revised its rating on the Danish pharmaceutical company from Buy to Hold, triggering a sell-off among investors.

HSBC not only downgraded Novo Nordisk but also drastically reduced its price target for the stock. The new target was set at $57, a substantial decrease from the previous target of $102. This adjustment represents a nearly 44% reduction in HSBC's valuation of the company, contributing to the sharp decline in Novo Nordisk's stock price.

The rationale behind HSBC's decision appears to be linked to concerns about Novo Nordisk's position in the obesity market. According to the firm, their previous thesis that Novo would regain obesity market share is no longer supported. This shift in perspective suggests that HSBC analysts have reassessed the company's growth prospects in this key therapeutic area, leading to a more cautious stance on the stock.