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Investing.com - Cantor Fitzgerald maintained its Overweight rating and $975.00 price target on Eli Lilly (NYSE:LLY) stock on Monday. The pharmaceutical giant, with a market capitalization of $684.7 billion and impressive revenue growth of 36.4% in the last twelve months, continues to draw attention for its weight loss drug development pipeline. According to InvestingPro data, analyst targets for LLY range from $650 to $1,190, reflecting diverse views on the company’s potential.
The firm highlighted Eli Lilly’s emphasis that eloralintide functions as a selective amylin receptor agonist rather than a calcitonin receptor agonist. Lilly believes this distinction could potentially deliver an improved gastrointestinal profile compared to competing treatments like cagrilintide and CagriSema. The company’s robust gross profit margin of 81.7% demonstrates its operational efficiency in developing and commercializing innovative treatments.
Cantor Fitzgerald noted that Lilly expressed caution regarding expectations that amylin-targeted agents will produce higher quality weight loss, specifically fat versus muscle loss. The company indicated that such claims are currently supported by limited pre-clinical data that requires further validation through clinical trials.
Eli Lilly views amylin as a potentially valuable treatment option specifically for patients who cannot tolerate incretin-based therapies, according to the research note. This positioning suggests a strategic approach to address unmet needs in the weight management market.
The maintained Overweight rating reflects Cantor Fitzgerald’s continued confidence in Eli Lilly’s prospects despite the noted cautions about amylin-targeted treatments. The $975.00 price target remains unchanged following this assessment of the company’s weight loss drug development strategy. Based on InvestingPro analysis, Eli Lilly is currently trading near its Fair Value, with a "GREAT" overall financial health score. Discover more insights and 13 additional ProTips about Eli Lilly, along with comprehensive Pro Research Reports covering 1,400+ top stocks, exclusively on InvestingPro.
In other recent news, Eli Lilly has been active with several significant developments. The company recently announced its acquisition of Verve Therapeutics for $1.3 billion, a move that strengthens its gene-editing capabilities. This acquisition includes Verve’s proprietary lipid nanoparticle delivery technology, which is crucial for developing therapies targeting cardiometabolic conditions. UBS and Bernstein have both responded positively to the acquisition, maintaining a Buy rating and an Outperform rating, respectively, on Eli Lilly stock. UBS noted synergies between Verve’s therapies and Eli Lilly’s existing offerings, while Bernstein highlighted the strategic value of the deal.
Additionally, Eli Lilly’s Alzheimer’s drug, Kisunla, is undergoing a re-examination by the European Medicines Agency after a previous recommendation against its approval. This presents a new opportunity for the drug to potentially enter the European market. Moreover, the American College of Cardiology has recommended the wider use of weight-loss drugs, including Eli Lilly’s Zepbound, as a preventive measure against heart disease. This recommendation could influence insurance coverage and drive broader adoption of these medications. Analysts at Morgan Stanley (NYSE:MS) project that the market for such weight-loss drugs could reach $150 billion in peak sales within a decade.
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