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BMO Capital has maintained its Outperform rating and $1,101.00 price target for Eli Lilly (NYSE: NYSE:LLY), following engagements with the company's new Chief Financial Officer, Lucas Montarce.
The firm expressed confidence in Montarce's vision and leadership after he assumed the role on September 9, 2024.
Montarce, a seasoned executive within Eli Lilly, has been in the CFO position for only a few weeks but has already made a positive impression.
BMO Capital had the opportunity for one-on-one time with Montarce and also participated in a small group lunch to understand his approach and plans for the pharmaceutical company.
During the meetings, BMO Capital found Montarce to be forward-looking and well-prepared to navigate Eli Lilly through a significant phase of growth and transformation. The analyst firm believes that his appointment comes at a crucial time and that his vision aligns with the company's trajectory.
Eli Lilly, a leader in the pharmaceutical industry, is expected to benefit from Montarce's experience and strategic direction. BMO Capital's reiteration of the Outperform rating signifies their belief in the company's strong potential and Montarce's capability to contribute to its success.
In other recent news, Eli Lilly has announced a $4.5 billion investment in a new facility named Lilly Medicine Foundry in Lebanon, Indiana, aiming to advance manufacturing and drug development.
The facility is expected to begin operations by the end of 2027, increasing Lilly's total investment in the United States to over $23 billion since 2020. Additionally, the pharmaceutical giant revealed long-term study results showing over 80% of adults and adolescents with moderate-to-severe atopic dermatitis maintained clear or nearly clear skin after up to three years of EBGLYSS treatment.
On the regulatory front, Eli Lilly's Alzheimer's treatment, donanemab, known as Kisunla, received approval in Japan, providing a new option for the growing Alzheimer's patient population in the country.
In the realm of analyst ratings, Deutsche Bank maintained a Buy rating on Eli Lilly shares, and Cantor Fitzgerald reaffirmed an Overweight rating, emphasizing Eli Lilly's efforts to expand its drug production capacity and commercialize oral obesity drug orforglipron.
InvestingPro Insights
Eli Lilly's strong market position and financial performance are reflected in the latest data from InvestingPro. The company boasts a substantial market capitalization of $796.41 billion, underscoring its prominence in the pharmaceutical industry. Lilly's revenue growth has been impressive, with a 31.87% increase over the last twelve months as of Q2 2024, reaching $38.92 billion. This aligns with BMO Capital's confidence in the company's growth trajectory under new CFO Lucas Montarce's leadership.
InvestingPro Tips highlight Lilly's financial strength and market performance. The company has maintained dividend payments for 54 consecutive years, demonstrating long-term stability that investors value. Additionally, Lilly has shown a high return over the last year, with a one-year price total return of 65.42% as of the latest data. These factors support BMO Capital's Outperform rating and suggest that the market has been rewarding Lilly's strategic initiatives and product pipeline.
For investors seeking a deeper understanding of Eli Lilly's potential, InvestingPro offers 16 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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