Shares of Eli Lilly And Co
The stock has been under pressure for the past three months, due to macro uncertainties and not fundamental concerns, according to BofA Securities.
The Eli Lilly Analyst: Geoff Meacham reiterated a Buy rating on Eli Lilly, while raising the price target from $600 to $700.
The Eli Lilly Thesis: Mounjaro, which is expected to be approved for obesity in the fourth quarter of 2023, is one of the three key value drivers for the company, Meacham said in the note.
"Obesity remains in focus by specialists and generalists alike given the size of the peak opportunity (>$100B globally)," the analyst wrote.
The company's strategy of having an "obesity armamentarium with tirzepatide (injectable; 4Q23e approval), orforglipron (oral; phase 3, Exhibit 1), and retatrutide (injectable; phase 3) provides several administration options and positions Lilly well in the competitive obesity landscape," he added.
Meacham believes Eli Lilly's potential for margin expansion and the early- and mid-stage pipeline are "unappreciated parts of the story, which could play out in 2025+."
LLY Price Action: Shares of Eli Lilly had risen by 2.49% to $554.94 at the time of publication Friday.
