Tonix Pharmaceuticals stock halted ahead of FDA approval news
Investing.com - Cantor Fitzgerald has reduced its price target on Eli Lilly (NYSE:LLY) to $825.00 from $975.00 while maintaining an Overweight rating on the pharmaceutical giant’s stock. The company’s shares have declined over 14% in the past week, with InvestingPro data showing the stock is currently in oversold territory. Analyst targets for the stock range from $650 to $1,190, reflecting mixed sentiment in the market.
The adjustment follows concerns about the company’s oral weight loss drug candidate, orforglipron, which delivered weight loss results that came in below market expectations and semaglutide benchmarks.
Despite the numerical underperformance, Cantor Fitzgerald analyst Carter Gould indicated that the difference is not "materially different" from benchmarks, nor does it represent the "dramatic break in the narrative" that some market observers have suggested.
The firm noted that resolving questions about orforglipron’s efficacy may take time, with potential feedback from key opinion leaders expected at the European Association for the Study of Diabetes conference in September.
Cantor Fitzgerald expressed concern that orforglipron might evolve into a "show-me-story" around its launch, suggesting that definitive answers about its market performance might not emerge until late 2026.
In other recent news, Eli Lilly reported second-quarter 2025 earnings that surpassed expectations, delivering strong results in both revenue and earnings per share. The company also raised its full-year guidance, signaling confidence in its financial outlook. Despite these positive earnings, investor sentiment was impacted by clinical trial data for Orforglipron, an oral obesity drug candidate, which did not meet market expectations. This led to a notable reaction from analysts, with Guggenheim lowering its price target for Eli Lilly to $875 while maintaining a Buy rating. Similarly, UBS reduced its price target to $895, also maintaining a Buy rating, due to concerns over the Orforglipron Phase 3 data. Meanwhile, JPMorgan reiterated its Overweight rating with a price target of $1,100, maintaining a positive stance despite the market’s concerns. In legal developments, Eli Lilly is facing a lawsuit from the Texas Attorney General, accusing the company of allegedly bribing healthcare providers to prescribe its medications, specifically mentioning its GLP-1 drugs Mounjaro and Zepbound. These recent developments highlight a complex landscape for Eli Lilly, balancing strong financial performance with challenges in clinical trials and legal issues.
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