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Eli Lilly stock maintains price target with Jefferies' buy rating

EditorAhmed Abdulazez Abdulkadir
Published 20/05/2024, 09:32 pm
© Reuters.

On Monday, Jefferies maintained a confident stance on Eli Lilly (NYSE:LLY) shares, reiterating a Buy rating and a price target of $915.00. The affirmation comes after competitor Amgen (NASDAQ:AMGN) presented interim results from a Phase 2 study for their drug AMG 133, which is being developed for obesity treatment.

Eli Lilly, traded on the New York Stock Exchange under the ticker NYSE:LLY, remains a strong player in the market according to Jefferies, despite the promising data from Amgen.

The analyst from Jefferies highlighted that while AMG 133 appears to offer a "differentiated" profile, particularly in terms of potential weight loss and tolerability, there is no immediate concern for Eli Lilly's position. The drug in question, AMG 133, could potentially lead to a weight loss of nearly 25% at week 52 in patients with obesity, along with a tolerability profile that stands out from other drugs at the highest doses.

Despite the potential of AMG 133, the analyst specified that the current estimates for Eli Lilly's performance remain unchanged. The reasoning provided suggests that Eli Lilly's offerings in the market are still competitive and that the overall field is moving towards treatments that provide higher quality weight loss, possibly referencing drugs that target amylin pathways.

The discussion on AMG 133 and its implications were part of Amgen's first-quarter earnings call for the year 2024. The analyst's comments reflect a broader perspective on the market dynamics and the evolving landscape of obesity treatments.

Eli Lilly's stock performance and outlook are thus seen as stable by Jefferies, with the analyst's comments underscoring confidence in the company's ability to maintain its competitive edge in the pharmaceutical industry.

InvestingPro Insights

Following Jefferies' optimistic outlook on Eli Lilly (NYSE:LLY), InvestingPro data and insights further illuminate the company's financial landscape. Eli Lilly's market capitalization stands robust at $693.31 billion, reflecting its significant presence in the pharmaceutical industry. The company's P/E ratio is currently high at 113.05, indicating a premium valuation by the market which aligns with Jefferies' high price target. Despite the high valuation, Eli Lilly's revenue has shown impressive growth, with a 29.76% increase over the last twelve months as of Q1 2024, underscoring their successful expansion and sales strategies.

InvestingPro Tips reveal that Eli Lilly has raised its dividend for 9 consecutive years and has maintained dividend payments for 54 consecutive years, demonstrating a strong commitment to shareholder returns. Additionally, Eli Lilly's stock generally trades with low price volatility, providing a level of stability for investors. For those looking to delve deeper into Eli Lilly's financials and forecasts, InvestingPro offers 19 additional tips on their platform. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain comprehensive insights to inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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