Navitas stock soars as company advances 800V tech for NVIDIA AI platforms
On Thursday, Morgan Stanley (NYSE:MS) reaffirmed its confidence in Eli Lilly stock (NYSE:LLY) by maintaining an Overweight rating and a price target of $1,133.00. Currently trading at $716.68, the stock has drawn strong analyst attention, with InvestingPro data showing seven analysts recently revising earnings estimates upward. The company’s market capitalization stands at $641.77 billion, reflecting its position as a prominent player in the pharmaceuticals industry. The endorsement follows a recent announcement by Cigna/Evernorth, which introduced a new benefit option that limits patient copays to $200 per month for Lilly’s Zepbound and Novo’s Wegovy. This move is seen as a deviation from CVS Caremark’s strategy, which on May 2, 2025, partnered with Novo Nordisk (NYSE:NVO) to prioritize Wegovy on its national formulary starting July 1, 2025.
Morgan Stanley’s analysis is based on conversations with Eli Lilly’s Investor Relations regarding the Cigna/Evernorth announcement. Eli Lilly’s IR outlined several key points of the agreement: it represents an open access deal in line with the company’s contracting strategy; Cigna (NYSE:CI)’s advertising of the new offering is designed to enable employers to provide obesity coverage at a reduced cost; the agreement ensures open access for Zepbound and Wegovy into 2026 under basic template lives managed by Express Scripts, Inc. (ESI); and the agreement’s impact on pricing aligns with Eli Lilly’s expectations without affecting the company’s mid-to-high single digit price decline guidance for its 2025 portfolio.
The agreement between Cigna/Evernorth and Eli Lilly is multifaceted, with the first element being a marketing strategy by Cigna to present a new $200 co-pay cap plan. This strategy is aimed at encouraging employers to opt into obesity coverage while keeping the costs for employers manageable. The deal comes as Eli Lilly demonstrates strong financial performance, with revenue growth of 36.38% and an impressive gross profit margin of 81.7%. According to InvestingPro, the company maintains a robust financial health score, suggesting strong operational efficiency. Additionally, there is a separate employer/Cigna cost that accompanies the $200 patient co-pay.
The second part of the agreement ensures that both Zepbound and Wegovy will have open access into the year 2026, based on the standard template lives managed by ESI. While Eli Lilly has opted not to disclose further details, they emphasized that the pricing impact is consistent with what the company had anticipated.
Eli Lilly’s IR also confirmed that there are no anticipated changes to the company’s previously issued pricing guidance for its 2025 portfolio, which projects a mid-to-high single digit decline in prices. This guidance remains intact despite the new developments with Cigna/Evernorth. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, including detailed valuation metrics, 15+ additional ProTips, and expert analysis of Eli Lilly’s market position among 1,400+ top US stocks.
In other recent news, Eli Lilly and Company announced that the Australian Therapeutic Goods Administration has approved Kisunla for treating mild cognitive impairment and mild dementia due to Alzheimer’s disease. This approval is based on the TRAILBLAZER-ALZ 2 Phase 3 study, which demonstrated a significant slowing of cognitive decline in patients. Meanwhile, Bernstein analysts have reiterated their Outperform rating for Eli Lilly, maintaining a $1,100 price target, highlighting the company’s growing market share in the GLP-1 sector. The analysts noted a year-over-year surge of 61.8% in GLP-1 prescriptions, with Eli Lilly’s tirzepatide showing impressive growth.
Additionally, Eli Lilly and Purdue University have expanded their alliance with a $250 million investment, focusing on integrating artificial intelligence in drug discovery and enhancing workforce development. This initiative aims to expedite the development and delivery of new medicines. In another strategic move, Eli Lilly has announced a series of executive leadership transitions to support its growth in the U.S. and cardiometabolic health sectors. These shifts include Ilya Yuffa taking charge of Lilly USA and Global Customer Capabilities and Patrik Jonsson overseeing Lilly International.
The company continues to invest in innovation and workforce development, reflecting its commitment to addressing significant health challenges. The recent developments underscore Eli Lilly’s strategic efforts in expanding its market presence and enhancing its operational capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.