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Investing.com - BMO Capital reiterated its Outperform rating and $900.00 price target on Eli Lilly (NYSE:LLY) Monday, following the company's presentation at the American Diabetes Association (ADA) event. According to InvestingPro data, analyst targets for the pharmaceutical giant range from $650 to $1,190, with the stock currently trading near $777.
The firm highlighted Eli Lilly's metabolic portfolio developments, noting that the pharmaceutical company quickly provided new information to investors shortly after releasing its ACHIEVE-1 data. The company's strong market position is reflected in its impressive 81.7% gross profit margin and robust revenue growth of 36.4% over the last twelve months.
BMO Capital pointed to Lilly's disclosure that its second oral GLP-1 asset in development, naperiglipron, utilizes the danuglipron scaffold, demonstrating the company's continued confidence in this technology despite previous failures of danuglipron and related compounds.
The research firm also noted Lilly's oral triple G agonist in development, which could potentially deliver higher efficacy among oral agents for metabolic conditions.
BMO Capital characterized Lilly as a company that "forever one to not rest on its laurels," suggesting the pharmaceutical giant continues to advance its cardiometabolic pipeline with multiple promising candidates.
In other recent news, Eli Lilly has been active with several significant developments. The company reported its acquisition of gene therapy firm Verve for $1 billion, plus an additional $300 million contingent upon future trial milestones, as confirmed by UBS, which maintained a Buy rating with a $1,050 price target. Additionally, the European Medicines Agency has begun re-examining its previous recommendation against approving Eli Lilly's Alzheimer's drug Kisunla, offering a potential path to market after initial rejection. The American College of Cardiology recommended broader use of weight-loss drugs, including Eli Lilly's Zepbound, to prevent heart disease, marking a shift in guidelines that could influence insurance coverage and patient adoption.
On the analyst front, Truist Securities reiterated a Buy rating on Eli Lilly, citing a favorable risk/benefit profile for its oral diabetes drug orforglipron, despite safety concerns regarding liver enzyme elevations. Cantor Fitzgerald also maintained an Overweight rating, emphasizing the potential of Eli Lilly's weight loss drug pipeline, specifically its amylin-targeted treatments. These recent developments reflect Eli Lilly's strategic maneuvers in expanding its therapeutic offerings and addressing regulatory challenges.
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