BofA update shows where active managers are putting money
Eli Lilly’s stock has reached a 52-week low, hitting $674.94, marking a significant drop from its 52-week high of $972.53. According to InvestingPro analysis, the company maintains strong fundamentals with a "GOOD" Financial Health score. This milestone comes amid a challenging year for the pharmaceutical giant, though the stock has shown resilience with a more modest 1-year total return of -2.68%. Notably, the company has maintained dividend payments for 55 consecutive years, with a recent dividend growth of 15.38%. The decline reflects broader market trends and specific hurdles faced by the company, including increased competition and regulatory pressures. However, 8 analysts have recently revised their earnings upward for the upcoming period, with revenue growth forecast at 34% for FY2025. Investors are closely monitoring Eli Lilly’s strategic responses to these challenges as they seek to regain momentum in a volatile market environment. For deeper insights into Eli Lilly’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Eli Lilly and Company (NYSE:LLY) announced that its investigational oral GLP-1 receptor agonist, orforglipron, achieved significant weight reduction in a Phase 3 trial. The trial involved 3,127 participants and demonstrated an average weight loss of 12.4% with the highest dose, meeting the study’s primary endpoint. Despite these results, the weight loss fell short of Wall Street’s expectations, which had hoped for outcomes similar to Novo Nordisk (NYSE:NVO)’s Wegovy. Additionally, Eli Lilly’s stock rose on reports that Medicare might soon cover weight-loss medications, potentially broadening the market for its GLP-1 drugs. Bernstein SocGen Group reiterated an Outperform rating on the company, citing this potential Medicare expansion. In another development, Eli Lilly’s diabetes drug Mounjaro showed promising cardiovascular benefits in a study, demonstrating an 8% lower rate of major adverse cardiovascular events compared to Trulicity. This study also reported a 16% lower rate of all-cause mortality for patients taking Mounjaro. Meanwhile, BofA Securities maintained a Neutral rating on Novo Nordisk, noting the competition from Eli Lilly’s trial results. These developments highlight the ongoing advancements and competitive landscape in the pharmaceutical sector.
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