Intel stock spikes after report of possible US government stake
On Monday, Morgan Stanley (NYSE:MS) reaffirmed its positive stance on Eli Lilly (NYSE:LLY) stock, maintaining an Overweight rating and a price target of $1,146.00. According to InvestingPro data, Eli Lilly, currently trading above its Fair Value, has demonstrated impressive growth with a 32% revenue increase in the last twelve months. The company maintains a strong market position with a market capitalization of $768 billion. The endorsement follows competitor Novo Nordisk (NYSE:NVO)’s announcement of Phase 3 trial results for their diabetes drug, Cagri-sema, which showed significant weight loss outcomes.
According to the trial data, participants using Cagri-sema experienced an average weight loss of 15.7% compared to a 3.1% loss in the placebo group when measured by efficacy estimand at 68 weeks. When evaluated by treatment policy estimand, the weight loss was 13.7% compared to 3.4% for the placebo at the same time frame.
Although the press release from Novo Nordisk did not include Hemoglobin A1c (HbA1c) data, which was a secondary endpoint of the trial, the announcement emphasized that Cagri-sema was generally safe and well-tolerated. The most common adverse events (AEs) reported were gastrointestinal in nature, with the vast majority being mild to moderate and diminishing over time. As a prominent player in the pharmaceuticals industry, Eli Lilly maintains strong financial health with an impressive gross profit margin of 81.3% and has consistently paid dividends for 55 consecutive years.
Novo Nordisk has indicated plans to file for approval of Cagri-sema in the first quarter of 2026. This development could have implications for the competitive landscape in diabetes treatments, a sector where Eli Lilly is a significant player.
Eli Lilly’s stock continues to be watched closely by investors as the company competes in the rapidly evolving diabetes care market. Morgan Stanley’s reaffirmed rating and price target reflect confidence in Eli Lilly’s position and future prospects within the industry. InvestingPro analysis shows strong analyst consensus with a bullish 1.64 recommendation score, while the company’s revenue is forecast to grow by 31% in FY2025. For deeper insights into Eli Lilly’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, covering over 1,400 top US stocks.
In other recent news, Eli Lilly has announced a substantial $27 billion investment in U.S. manufacturing, adding to the $50 billion already committed since 2020. This move is part of Eli Lilly’s strategy to expand its domestic production capabilities, including the establishment of four new U.S. manufacturing facilities. Deutsche Bank (ETR:DBKGn) maintained its Buy rating on Eli Lilly, citing this expansion as an incremental positive, particularly given the high demand in the Diabesity sector. Meanwhile, Bernstein analysts reaffirmed their Outperform rating with a $1,100 price target, highlighting the company’s strategic orientation and robust pipeline, which includes 26 phase 1 assets.
Additionally, a U.S. federal judge has denied an injunction that would have allowed compounding pharmacies to produce copies of Eli Lilly’s weight-loss drug, Zepbound, following a lawsuit against the FDA’s prohibition. In related developments, Bernstein maintained a Market Perform rating on Novo Nordisk, with a DKK620 price target, after the company launched a direct-to-patient access program for its obesity drug Wegovy in the U.S. However, the analyst expressed caution due to anticipated competition from Eli Lilly and potential pricing pressures.
Eli Lilly’s strategic moves, including its engagement with the current administration and investment in U.S. manufacturing, are seen as reinforcing its market leadership. The company’s focus on expanding its manufacturing footprint and advancing its development pipeline underscores its commitment to growth and innovation. These developments are part of Eli Lilly’s broader efforts to enhance its market position and align with national health and manufacturing goals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.