Leerink Partners analyst David Risinger has maintained their neutral stance on LLY stock, giving a Hold rating yesterday.
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David Risinger has given his Hold rating due to a combination of factors surrounding Eli Lilly & Co’s recent clinical trial results and market expectations. The company released promising top-line results from the orforglipron Phase 3 trial, showing significant weight loss in obese and overweight patients with type 2 diabetes. While the efficacy of orforglipron was notable, particularly when compared to existing treatments like semaglutide, the higher discontinuation rates due to side effects such as nausea and vomiting raised concerns.
Despite the potential for orforglipron to generate substantial sales by 2030, exceeding consensus estimates, the side effect profile and the competitive landscape with existing GLP-1 injections warrant a cautious outlook. The need for patients and healthcare providers to balance the benefits and risks of the new oral option versus established injectable treatments also contributes to the Hold rating. These considerations suggest that while Eli Lilly’s developments are promising, they do not yet justify a more aggressive investment stance.
In another report released yesterday, HSBC also upgraded the stock to a Hold with a $700.00 price target.
Based on the recent corporate insider activity of 124 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LLY in relation to earlier this year.