Analyst Tim Anderson of Bank of America Securities maintained a Buy rating on Eli Lilly & Co, retaining the price target of $900.00.
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Tim Anderson has given his Buy rating due to a combination of factors that highlight Eli Lilly & Co’s strong growth potential and strategic positioning in the obesity drug market. The recent update from the Institute for Clinical and Economic Review (ICER) has deemed the GLP-1 class of drugs, including Eli Lilly’s offerings, as cost-effective for obesity treatment. This marks a significant shift from previous assessments and counters the narrative that these drugs are overpriced relative to their clinical benefits.
Furthermore, the expanded model now includes a broader range of obesity-related outcomes and quality of life improvements, which strengthens the value proposition of Eli Lilly’s drug portfolio. Despite challenges in payer coverage, the analysis is a step towards better acceptance and reimbursement. Eli Lilly’s projected revenue growth significantly outpaces its peers, reinforcing the Buy rating. The company’s robust pipeline and leadership in the obesity sector position it well for sustained success, although investors should be mindful of potential risks associated with the stock.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $1,190.00 price target.