Shares of Eli Lilly and Co (NYSE:LLY) rose Friday after analysts at Bank of America reaffirmed its confidence in the company.
The firm reiterated its Buy rating and upped its price target to $700 from $600. Shares of the pharmaceutical company were up 3.8% Friday afternoon to $561.83.
Eli Lilly stock has actually fallen about 12% over the past three weeks, but that’s “mostly based on macro uncertainties/selling pressure, not from any fundamental concerns,” the analysts wrote.
Looking ahead, the firm is optimistic about the approval of Eli Lilly’s obesity drug Mounjaro in the fourth quarter. Investors should also have an eye on data expected from rival Novo Nordisk (NYSE:NVO) own obesity drug trial in November.
Then there are the company’s other obesity drugs in phase three development, orforglipron and retatrutide.
“In our view, margin expansion and the early/mid-stage pipeline are unappreciated parts of the story, which could play out in 2025+,” the analysts wrote. “Based on adding orforglipron and retatrutide to our operating model, we've raised our [price target] to $700 (from $600).”
“Notably, indications outside of diabetes/obesity including sleep apnea, heart failure, CKD, NASH, and others remain major upside drivers as does faster reimbursement / higher near-term demand in obesity,” they added.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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