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Investing.com - Berenberg downgraded Eli Lilly (NYSE:LLY) from Buy to Hold and lowered its price target to $830.00 from $970.00 on Wednesday. According to InvestingPro data, analyst targets for LLY currently range from $650 to $1,190, with the stock trading at relatively high earnings multiples despite strong fundamentals.
The research firm cited a plateauing in the obesity market upgrade cycle as a key reason for the rating change, despite Eli Lilly’s strong position in the obesity and diabetes treatment space.
Berenberg acknowledged Eli Lilly’s "spectacular shareholder returns" of 413% over the past five years, significantly outperforming the sector peer average of 71%.
The firm’s analysts indicated they had previously supported Eli Lilly’s investment case based on what they described as an "once underappreciated, best-in-class obesity and diabetes franchise."
While Berenberg expects Eli Lilly to "remain in the obesity driving seat," the firm’s forecasts now fall slightly below consensus expectations for Eli Lilly’s franchise performance.
In other recent news, Eli Lilly and Company announced the launch of Lilly TuneLab, an artificial intelligence platform designed to assist biotech companies in drug discovery. The platform utilizes proprietary data valued at over $1 billion, highlighting its significance in the industry. Additionally, Eli Lilly reported that its phase 3 trial of Jaypirca met the primary endpoint in treating chronic lymphocytic leukemia, paving the way for potential label expansions. The company’s pirtobrutinib also showed promising results in a front-line study for untreated chronic lymphocytic leukemia, achieving a significant improvement in progression-free survival. Furthermore, the U.S. Food and Drug Administration granted Breakthrough Therapy designation to Lilly’s olomorasib, in combination with Keytruda, for specific lung cancer treatments. This designation applies to patients with advanced non-small cell lung cancer exhibiting certain genetic mutations. These developments reflect Eli Lilly’s ongoing efforts in advancing its pharmaceutical offerings.
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