BofA update shows where active managers are putting money
Investing.com - BMO Capital has reiterated an Outperform rating on Eli Lilly (NYSE:LLY) with a price target of $840.00 following positive ATTAIN-2 clinical trial results for its weight loss drug orforglipron. According to InvestingPro data, 14 analysts have recently revised their earnings estimates upward, with analyst targets ranging from $650 to $1,190.
The ATTAIN-2 study demonstrated peak placebo-adjusted weight loss of 8.3% in obese patients with type 2 diabetes, setting up orforglipron for an FDA filing by the end of the year.
BMO noted that the slightly lower overall weight loss compared to the ATTAIN-1 trial was expected due to differences in patient populations, as ATTAIN-1 evaluated the drug in obese non-diabetic patients while ATTAIN-2 focused on those with type 2 diabetes.
The research firm stated the data "reads as expected," indicating there remains room for competition in the oral weight loss medication market from both Eli Lilly and Novo Nordisk.
BMO anticipated Eli Lilly shares would trade higher following the data release, noting that investor expectations had been reset after the previous ATTAIN-1 results.
In other recent news, Eli Lilly reported positive results from its ATTAIN-2 trial for the obesity and type 2 diabetes treatment, orforglipron. The trial showed that at 72 weeks, the highest dose achieved a 9.6% weight loss and a 1.8% reduction in A1C levels, with a discontinuation rate of 10.6%. UBS maintained its Buy rating with a price target of $895 following these results, while TD Cowen reiterated its Buy rating with a higher price target of $960. William Blair noted that orforglipron outperformed investor expectations, particularly in patients with both obesity and type 2 diabetes.
Additionally, Eli Lilly’s breast cancer drug, Verzenio, demonstrated a significant survival benefit in high-risk patients during the Phase 3 monarchE trial. The trial showed improved overall survival when Verzenio was combined with endocrine therapy. BofA Securities also reiterated a Buy rating with a $900 price target, highlighting Eli Lilly’s projected revenue growth of 35% in 2025, which surpasses the industry average. These developments underscore the company’s ongoing advancements in its drug pipeline.
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