Intel stock spikes after report of possible US government stake
On Wednesday, Deutsche Bank (ETR:DBKGn) analysts maintained their Buy rating and $1,010.00 price target on Eli Lilly (NYSE:LLY) stock, joining a strong consensus among Wall Street analysts who rate the $817 billion pharmaceutical giant favorably. Trading near its 52-week high of $972.53, the stock has delivered a 17% return over the past year. This affirmation comes in response to Eli Lilly’s announcement that it intends to double its manufacturing investment in the United States. The pharmaceutical giant’s expansion plans include the addition of four new U.S. manufacturing facilities. According to InvestingPro analysis, Eli Lilly maintains a strong financial health score, with 18 additional key insights available to subscribers.
The decision by Eli Lilly to increase its capital expenditure (CapEx) was somewhat expected by the market due to the high demand in the Diabesity sector, supported by the company’s impressive 32% revenue growth over the last twelve months. The scale of the expansion, with the establishment of four new facilities, was viewed as an incremental positive by Deutsche Bank. The analysts pointed out that this move could partially counteract potential negative impacts from Pharma tariffs introduced by President Trump.
Eli Lilly’s investment is not solely concentrated in the United States; the company also operates facilities in Ireland and Germany. Of the four new U.S. sites, one will be dedicated to expanding global parental manufacturing. The other three will concentrate on Active Pharmaceutical (TADAWUL:2070) Ingredient (API) production and will notably bring back small molecule synthesis to American soil. For deeper insights into Eli Lilly’s valuation and growth prospects, InvestingPro subscribers can access comprehensive research reports and financial metrics, including detailed Fair Value analysis that currently suggests the stock may be trading above its intrinsic value.
The precise increase in production capacity and the number of salable doses these new facilities will contribute remain uncertain. Deutsche Bank analysts made inquiries but did not receive specific figures. Nevertheless, they interpret Eli Lilly’s commitment to expanding its manufacturing footprint as a strong indicator of the sustained high demand for Diabesity treatments, reflected in the company’s robust gross profit margin of 81.3%.
In other recent news, Eli Lilly has announced plans to invest over $50 billion in U.S. manufacturing, marking the largest pharmaceutical manufacturing investment in the country’s history. This expansion includes the construction of four new sites, aimed at enhancing production capabilities across various therapeutic areas. Additionally, Eli Lilly has reached an agreement to acquire Organovo’s FXR program for inflammatory bowel disease treatment, securing worldwide rights to the program’s commercial and intellectual property aspects.
JPMorgan has reaffirmed its Overweight rating on Eli Lilly shares, maintaining a price target of $1,100.00, as the company nears significant Phase 3 clinical trial results for its drug candidate orforglipron. Meanwhile, BMO Capital Markets has maintained an Outperform rating with a $1,010 price target, following Eli Lilly’s expansion of its self-pay program. This initiative includes new dosage options and reduced prices for existing vials, aiming to enhance access for patients who self-pay.
Bernstein analysts have reiterated an Outperform rating and a $1,100.00 price target for Eli Lilly, highlighting the company’s recent pricing strategy for its diabetes medication, Zepbound. The strategy is expected to foster patient loyalty and potentially increase sales volume. These developments reflect Eli Lilly’s ongoing efforts to innovate and expand its market presence across different therapeutic areas.
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