Wells Fargo's analysts raised the firm's price target on Eli Lilly & Co. (NYSE:LLY) to $500 from $440, maintaining an Overweight rating on the stock in a note Friday.
The analysts said the firm "would be owners of LLT" into competitor Novo's SELECT trial reading out in mid-23.
"We think successful trial could move LLY up 5%, while failure could mean 10% downside," said the analysts, who added that even though LLY shares have performed well in the last three months, they see more upside.
Eli Lilly shares are up more than 16% this year, while it has gained almost 40% in the last 12 months, currently trading around the $426.50 mark.
Wells Fargo stated their analysis indicates likely success in the SELECT trial based on the multiple benefits GLP-1 mechanism provides.