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Eli Lilly shares target raised by Jefferies, citing 'attractive growth profile'

Published 05/23/2024, 09:12 PM
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On Thursday, Jefferies increased the price target for shares of pharmaceutical giant Eli Lilly (NYSE:LLY) to $925, up from $915, while reiterating a Buy rating. The firm expressed a positive outlook on the company, citing multiple factors supporting its bullish stance.

Eli Lilly is recognized for its robust growth profile, especially in a recessionary environment. The resilience of the healthcare sector often makes it an attractive area for investors seeking stability during economic downturns.

Jefferies highlighted the company's involvement in the GLP-1 drug class, which is anticipated to become one of the most significant in medical history. Eli Lilly's Mounjaro is expected to deliver strong outcomes for Type 2 diabetes management (T2DM), and recent SELECT trial data could pave the way for broader adoption by payers. This includes potential coverage for GLP-1 class drugs in obesity treatment by the Centers for Medicare & Medicaid Services (CMS).

The firm also commended Eli Lilly's innovation in next-generation oral GLP-1 treatments, which are predicted to approach the efficacy of Mounjaro in the long term. This positions the company at the forefront of developing advanced therapies for diabetes care.

Lastly, Jefferies anticipates near-term upside for Eli Lilly based on potential revenue and earnings per share (EPS) growth. This expectation reflects the company's strong pipeline and market performance, which could lead to increased investor confidence and stock valuation.

InvestingPro Insights

As Eli Lilly (NYSE:LLY) garners a heightened price target and a buy rating from Jefferies, InvestingPro data and tips provide additional context for investors considering this pharmaceutical giant. With a substantial market capitalization of $722.94 billion and a robust revenue growth of 29.76% over the last twelve months as of Q1 2024, LLY demonstrates a strong financial presence. The company's significant gross profit margin of 80.16% underscores its efficiency and profitability in the pharmaceutical industry.

InvestingPro Tips highlight Eli Lilly's track record of raising its dividend for 9 consecutive years, with a recent dividend growth of 15.04%. This consistency in returning value to shareholders is further evidenced by the company's maintenance of dividend payments for 54 consecutive years. Additionally, Eli Lilly's stock is noted for low price volatility, which may appeal to investors seeking stable equity performance.

For investors looking for more detailed analysis and additional InvestingPro Tips, there are 19 more tips available on Eli Lilly, which can be accessed through the specialized InvestingPro platform. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive toolset for informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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