BofA update shows where active managers are putting money
Investing.com - Jefferies lowered its price target on Eli Lilly (NYSE:LLY) to $905.00 from $1,057.00 on Friday, while maintaining a Buy rating following disappointing clinical trial results for the company’s obesity drug. The pharmaceutical giant, currently trading at $640.86, maintains strong analyst support with targets ranging from $650 to $1,190.
The price target reduction comes after Eli Lilly released topline data from the ATTAIN-1 72-week obesity trial for its drug orforglipron, which showed an 11.2% absolute weight loss (12.4% on efficacy estimand) at the 36 mg dose.
The trial results fell short of Jefferies’ expectations of 13-15% absolute weight loss and the broader market consensus of approximately 15% weight loss, contributing to a 14% decline in Eli Lilly’s stock price.
Safety concerns emerged in the data, with 24% of participants experiencing vomiting and approximately 10% discontinuing treatment due to adverse events. The study reported overall treatment discontinuation rates of 22-30% across both drug and placebo arms.
Despite the disappointing results, Jefferies maintained its Buy rating on Eli Lilly stock, though the firm acknowledged being "wrong" in its bullish outlook heading into the obesity drug data release.
In other recent news, Eli Lilly reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $6.31, notably higher than the forecasted $5.59. Revenue for the quarter reached $15.56 billion, exceeding predictions of $14.67 billion. Despite these strong financial results, the company’s stock experienced a decline in pre-market trading, influenced by broader market conditions and investor sentiment. Analysts from various firms have been closely monitoring these developments, although specific upgrades or downgrades were not mentioned. These recent developments highlight Eli Lilly’s financial performance and investor reactions in the current market environment.
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